ABSTRACT
Currency: In the Straits Settlements merchants and bankers did their calculations and their exchange business using the Spanish and the Mexican dollar respectively (24.43 grammes of fine silver) of 100 cents, although the Company’s rupee (see p. 481) had been introduced as legal tender in 1835. Additionally, various dollar strikes were declared legal tender in the Straits Settlement in 1867 as well as the US trade dollar and the yen in 1874. On October 21st 1890 the Mexican dollar was raised as the standard currency unit apart from which only the yen (until 1898), the US trade dollar (until 1895) and the Hong Kong dollar kept the status of legal tender. With the Straits Settlements Coinage Order of June 25th 1903, the striking of a Straits Settlements dollar (24.26 grammes of fine silver) at 100 cents started, and became legal tender from October 3rd 1903 and the only legal tender of the Straits Settlements from September 1st 1904 (Straits Settlements Order in Council of August 24th 1904). The coins were changed gradually in 1903/04 as at that time the Mexican as well as the Straits Settlements dollar (and also the British trade dollar and the Hong Kong dollar) were accepted as legal tender and the quoting of the exchange rates was simply done in or for “dollars”. On January 29th 1906 the gold value of the Straits Settlements dollar was fixed according to its actual price at 2 shillings 4 pence sterling. On this basis a fixed relation between the Straits Settlements dollar and the pound sterling (legal tender since November 1906) was laid down by the Straits Settlements Order in Council of October 22nd 1906: 7 pounds sterling = 60 Straits Settlements dollars or 2 shillings 4 pence sterling = 1 Straits Settlements dollar. So, the gold standard was introduced officially whereas the circulation of money in the Straits Settlements continued to be determined by silver dollars, i.e. new Straits Settlements dollars at 18.20 grammes of fine silver (since March 4th 1907), and by government notes (issued from 1906).
