Straits dollar
Encyclopedia
The Straits dollar was the currency of the Straits Settlements
from 1904 until 1939. At the same time, it was also used in the Federated Malay States
, the Unfederated Malay States
, Sarawak
, Brunei
, and British North Borneo.
, including issues both from Spain and from the new world Spanish colonies, most significantly Mexico
. Locally issued coinages included the Kelantan
and Trengganu keping
, and the Penang dollar
.
In 1837, the Indian rupee
was made the sole official currency in the Straits Settlements, as it was administered as part of India
. However, Spanish dollars continued to circulate and 1845 saw the introduction of coinage for the Straits Settlements using a system of 100 cents = 1 dollar, with the dollar equal to the Spanish dollar or Mexican peso
. In 1867, administration of the Straits Settlements was separated from India and the dollar was made the standard currency.
From 1898, the Straits dollar was issued by a new Board of Commissioners of Currency and private banks were prevented from issuing notes. Its value depreciated over the next eight years and was then pegged at two shilling
s four pence sterling
in 1906.
The Straits dollar was replaced at par by the Malayan dollar
in 1939.
To this day, Brunei and Singapore still use the successor to this unit, but Malaysia broke away in 1973.
and did not bear any indication of where they were to be used. A second issue of the same denominations was produced in 1862 by the government of British India. These bore the inscription "India - Straits".
In 1871, silver coins were issued in the name of the Straits Settlements for 5, 10 and 20 cents, followed by copper ¼, ½ and 1 cent the next year and silver 50 cents in 1886. Silver dollars were first minted in 1903.
A 3 page special issue of the Straits Settlements Government Gazette published in Singapore on 24 Aug. 1904, contained the following proclamation by then Governor, Sir John Anderson.
From 31 Aug. 1904, British, Mexican and Hong Kong Dollars would cease to be legal tender and would be replaced by the newly introduced Straits Settlements Dollar.
The purpose of this action was to create a separate exchange value for the new Straits Dollar as compared with the other silver dollars that were circulating in the region, notably the British trade dollar. The idea was that when the exchange value had diverged significantly from that of the other silver dollars, then the authorities would peg it to sterling at that value, hence putting the Straits Settlements unto the gold exchange standard. This pegging occurred when the Straits Dollar reached the value of two shillings and four pence (2s 4d) against sterling.
Within a few years, the value of silver rose rapidly such as to make the silver value of the Straits dollar higher than its gold exchange value. In order to prevent these dollars from being melted down, a new smaller dollar was issued in 1907 with a reduced silver content. A parallel story occurred in the Philippines at the same time. The last ¼ cent coins were issued in 1916. Dollars were last struck for circulation in 1920, with 50 cents production ending in 1921. The remaining coins continued in production until 1935.
(1837 - 1901)
The Government of Straits Settlements
, was first authorised to issue currency notes by Ordinance VIII of 1897, which came into operation on 31 August 1898. These notes, although dated 1 September 1898, were not issued to the public until 1 May 1899. Both the Chartered Bank
and Hong Kong and Shanghai Bank continued to issue banknotes, which circulated side by side with the official currency. All notes were freely exchangeable with the Mexican dollar or the various other silver coins that were legal tender in the Colony.
King Edward VII (1901 - 1910)
King Edward
ascended the throne in January 1901. In the previous issue the 5-dollar note had been of almost the same size and design as the 10-dollar. It was now reduced in size to help recognition. The series dated 1 February 1901 were printed by Thomas de la Rue & Co. Ltd.
of London
.
In 1903, a dollar-sized coin in silver was minted specially for the Straits Settlements
, and this became the standard unit of value. All other silver dollars at that time circulation were demonetized by 1904. A step rise in the price of silver, however, soon forced the government to call int the first issue of this Straits dollar and to replace it with a coin of lower silver content.
During the change over period, fear of a shortage of coin led to the introduction of the one-dollar note, fixed at an exchange rate against gold instead of silver. To effect this, the British gold sovereign
was for the first time declared legal tender, and the Straits dollar was given an arbitrary value of two shillings and four pence sterling. This dollar note proved so popular that it was retained in all future issues, so that to a very large extent it replaced the need for the silver coin.
By the end of 1906, the currency circulation had risen to $21,866,142, while that of the private banks had fallen to $1,329,052 (20th Century Impressions of British Malaya p. 138). The one-dollar notes, which were dated 1 September 1906, were printed by the London
firm of Thomas de la Rue & Co. Ltd.
. A five-dollar and a ten-dollar note both dated 8 June 1909, were printed Thomas de la Rue & Co. Ltd.
.
King George V
(1910 - 1936)
During this reign the range of currency notes was extended up to one thousand dollars for the convenience of inter-bank clearing transactions. In 1915, it was decided to make a complete change in the design of the 50, 100 and 1000 dollar notes. These denominations were first issued to the public in February 1920, October 1919 and May 1917 respectively. They were printed by Thomas de la Rue
. A 10,000 note was first issued in October 1922. This was not available to the public, but was used exclusively in inter-bank transfers.
King Edward VIII
(1936)
No special issue of notes was made during this brief reign.
King George VI
(1936 - 1952)
In September 1933, Sir Basil Blackett
was appointed by the Secretary of State for the Colonies
to lead a commission to consider the participation of the various Malay States, including Brunei
, in the profits and liabilities of the Straits Settlements
currency. The Blackett Report recommended that the sole power of issuing currency for the area should be entrusted to a pan-Malayan Currency Commission. This recommendation was adopted by the Government of the Straits Settlements, the Federated Malay States
, Unfederated Malay States
and Brunei
. Legislation was enacted by the Straits Settlements Currency Ordinance (No. 23) of 1938, and ratified by the various states during 1939 and the Malayan dollar
became legal tender in the Straits Settlements.
Straits Settlements
The Straits Settlements were a group of British territories located in Southeast Asia.Originally established in 1826 as part of the territories controlled by the British East India Company, the Straits Settlements came under direct British control as a crown colony on 1 April 1867...
from 1904 until 1939. At the same time, it was also used in the Federated Malay States
Federated Malay States
The Federated Malay States was a federation of four protected states in the Malay Peninsula—Selangor, Perak, Negeri Sembilan and Pahang—established by the British government in 1895, which lasted until 1946, when they, together with the Straits Settlements and the Unfederated Malay...
, the Unfederated Malay States
Unfederated Malay States
The term Unfederated Malay States was the collective name given to five British protected states in the Malay peninsula in the first half of the twentieth century. These states were Johor, Kedah, Kelantan, Perlis, and Terengganu...
, Sarawak
Sarawak
Sarawak is one of two Malaysian states on the island of Borneo. Known as Bumi Kenyalang , Sarawak is situated on the north-west of the island. It is the largest state in Malaysia followed by Sabah, the second largest state located to the North- East.The administrative capital is Kuching, which...
, Brunei
Brunei
Brunei , officially the State of Brunei Darussalam or the Nation of Brunei, the Abode of Peace , is a sovereign state located on the north coast of the island of Borneo, in Southeast Asia...
, and British North Borneo.
History
In the early nineteenth century, the most common currency used in the East Indies was the Spanish dollarSpanish dollar
The Spanish dollar is a silver coin, of approximately 38 mm diameter, worth eight reales, that was minted in the Spanish Empire after a Spanish currency reform in 1497. Its purpose was to correspond to the German thaler...
, including issues both from Spain and from the new world Spanish colonies, most significantly Mexico
Mexico
The United Mexican States , commonly known as Mexico , is a federal constitutional republic in North America. It is bordered on the north by the United States; on the south and west by the Pacific Ocean; on the southeast by Guatemala, Belize, and the Caribbean Sea; and on the east by the Gulf of...
. Locally issued coinages included the Kelantan
Kelantan keping
The keping was the currency of Kelantan until 1909 when it was replaced by the Straits dollar. It was subdivided into 10 pitis. Coins were struck in tin in denominations of 1 pitis , 1 and 10 keping....
and Trengganu keping
Trengganu keping
The keping was the currency of Trengganu until 1909 when it was replaced by the Straits dollar. It was subdivided into 10 pitis. Coins were issued in denominations of 1 pitis , 1 keping and 10 keping .-See also:* Kelantan keping...
, and the Penang dollar
Penang dollar
The dollar was the currency of Penang between 1786 and 1826. It was subdivided into 100 cents, also called pice, and was equal to the Spanish dollar. The dollar was introduced after the East India Company acquired the island in 1786. In 1826, the Indian rupee was declared legal tender in Penang at...
.
In 1837, the Indian rupee
Indian rupee
The Indian rupee is the official currency of the Republic of India. The issuance of the currency is controlled by the Reserve Bank of India....
was made the sole official currency in the Straits Settlements, as it was administered as part of India
India
India , officially the Republic of India , is a country in South Asia. It is the seventh-largest country by geographical area, the second-most populous country with over 1.2 billion people, and the most populous democracy in the world...
. However, Spanish dollars continued to circulate and 1845 saw the introduction of coinage for the Straits Settlements using a system of 100 cents = 1 dollar, with the dollar equal to the Spanish dollar or Mexican peso
Mexican peso
The peso is the currency of Mexico. Modern peso and dollar currencies have a common origin in the 15th–19th century Spanish dollar, most continuing to use its sign, "$". The Mexican peso is the 12th most traded currency in the world, the third most traded in the Americas, and by far the most...
. In 1867, administration of the Straits Settlements was separated from India and the dollar was made the standard currency.
From 1898, the Straits dollar was issued by a new Board of Commissioners of Currency and private banks were prevented from issuing notes. Its value depreciated over the next eight years and was then pegged at two shilling
Shilling
The shilling is a unit of currency used in some current and former British Commonwealth countries. The word shilling comes from scilling, an accounting term that dates back to Anglo-Saxon times where it was deemed to be the value of a cow in Kent or a sheep elsewhere. The word is thought to derive...
s four pence sterling
Pound sterling
The pound sterling , commonly called the pound, is the official currency of the United Kingdom, its Crown Dependencies and the British Overseas Territories of South Georgia and the South Sandwich Islands, British Antarctic Territory and Tristan da Cunha. It is subdivided into 100 pence...
in 1906.
The Straits dollar was replaced at par by the Malayan dollar
Malayan dollar
The dollar was the currency of the British colonies and protectorates in Malaya and Brunei until 1953. It was introduced in 1939, replacing the Straits dollar at par, with 1 dollar = two shillings four pence sterling .-Board of Commissioners of Currency, Malaya formed:The Malayan dollar was issued...
in 1939.
To this day, Brunei and Singapore still use the successor to this unit, but Malaysia broke away in 1973.
Coins
The first coins issued for the Straits Settlements in 1845 were ¼, ½ and 1 cent denominations in copper. They were issued by the East India CompanyBritish East India Company
The East India Company was an early English joint-stock company that was formed initially for pursuing trade with the East Indies, but that ended up trading mainly with the Indian subcontinent and China...
and did not bear any indication of where they were to be used. A second issue of the same denominations was produced in 1862 by the government of British India. These bore the inscription "India - Straits".
In 1871, silver coins were issued in the name of the Straits Settlements for 5, 10 and 20 cents, followed by copper ¼, ½ and 1 cent the next year and silver 50 cents in 1886. Silver dollars were first minted in 1903.
A 3 page special issue of the Straits Settlements Government Gazette published in Singapore on 24 Aug. 1904, contained the following proclamation by then Governor, Sir John Anderson.
From 31 Aug. 1904, British, Mexican and Hong Kong Dollars would cease to be legal tender and would be replaced by the newly introduced Straits Settlements Dollar.
The purpose of this action was to create a separate exchange value for the new Straits Dollar as compared with the other silver dollars that were circulating in the region, notably the British trade dollar. The idea was that when the exchange value had diverged significantly from that of the other silver dollars, then the authorities would peg it to sterling at that value, hence putting the Straits Settlements unto the gold exchange standard. This pegging occurred when the Straits Dollar reached the value of two shillings and four pence (2s 4d) against sterling.
Within a few years, the value of silver rose rapidly such as to make the silver value of the Straits dollar higher than its gold exchange value. In order to prevent these dollars from being melted down, a new smaller dollar was issued in 1907 with a reduced silver content. A parallel story occurred in the Philippines at the same time. The last ¼ cent coins were issued in 1916. Dollars were last struck for circulation in 1920, with 50 cents production ending in 1921. The remaining coins continued in production until 1935.
Banknotes
The Board of Commissioners of Currency introduced 5 and 10 dollar notes in 1898, followed by 50 and 100 dollars in 1901 and 1 dollar in 1906. Emergency issues of 10 and 25 cents were made between 1917 and 1920. 1000 dollar notes were issued in 1930 but during the remainder of the 1930s only 1, 5 and 10 dollar notes were issued.Straits Settlements government issues (1899 - 1942)
Queen VictoriaVictoria of the United Kingdom
Victoria was the monarch of the United Kingdom of Great Britain and Ireland from 20 June 1837 until her death. From 1 May 1876, she used the additional title of Empress of India....
(1837 - 1901)
The Government of Straits Settlements
Straits Settlements
The Straits Settlements were a group of British territories located in Southeast Asia.Originally established in 1826 as part of the territories controlled by the British East India Company, the Straits Settlements came under direct British control as a crown colony on 1 April 1867...
, was first authorised to issue currency notes by Ordinance VIII of 1897, which came into operation on 31 August 1898. These notes, although dated 1 September 1898, were not issued to the public until 1 May 1899. Both the Chartered Bank
Standard Chartered Bank
Standard Chartered PLC is a multinational financial services company headquartered in London, United Kingdom with operations in more than seventy countries...
and Hong Kong and Shanghai Bank continued to issue banknotes, which circulated side by side with the official currency. All notes were freely exchangeable with the Mexican dollar or the various other silver coins that were legal tender in the Colony.
King Edward VII (1901 - 1910)
King Edward
Edward VII of the United Kingdom
Edward VII was King of the United Kingdom and the British Dominions and Emperor of India from 22 January 1901 until his death in 1910...
ascended the throne in January 1901. In the previous issue the 5-dollar note had been of almost the same size and design as the 10-dollar. It was now reduced in size to help recognition. The series dated 1 February 1901 were printed by Thomas de la Rue & Co. Ltd.
De La Rue
De La Rue plc is a British security printing, papermaking and cash handling systems company headquartered in Basingstoke, Hampshire. It also has a factory on the Team Valley Trading Estate, Gateshead, and other facilities at Loughton, Essex and Bathford, Somerset...
of London
London
London is the capital city of :England and the :United Kingdom, the largest metropolitan area in the United Kingdom, and the largest urban zone in the European Union by most measures. Located on the River Thames, London has been a major settlement for two millennia, its history going back to its...
.
In 1903, a dollar-sized coin in silver was minted specially for the Straits Settlements
Straits Settlements
The Straits Settlements were a group of British territories located in Southeast Asia.Originally established in 1826 as part of the territories controlled by the British East India Company, the Straits Settlements came under direct British control as a crown colony on 1 April 1867...
, and this became the standard unit of value. All other silver dollars at that time circulation were demonetized by 1904. A step rise in the price of silver, however, soon forced the government to call int the first issue of this Straits dollar and to replace it with a coin of lower silver content.
During the change over period, fear of a shortage of coin led to the introduction of the one-dollar note, fixed at an exchange rate against gold instead of silver. To effect this, the British gold sovereign
British Sovereign coin
The sovereign is a gold coin of the United Kingdom, with a nominal value of one pound sterling but in practice used as a bullion coin.Named after the English gold sovereign, last minted in 1604, the name was revived with the Great Recoinage of 1816. Minting these new sovereigns began in 1817...
was for the first time declared legal tender, and the Straits dollar was given an arbitrary value of two shillings and four pence sterling. This dollar note proved so popular that it was retained in all future issues, so that to a very large extent it replaced the need for the silver coin.
By the end of 1906, the currency circulation had risen to $21,866,142, while that of the private banks had fallen to $1,329,052 (20th Century Impressions of British Malaya p. 138). The one-dollar notes, which were dated 1 September 1906, were printed by the London
London
London is the capital city of :England and the :United Kingdom, the largest metropolitan area in the United Kingdom, and the largest urban zone in the European Union by most measures. Located on the River Thames, London has been a major settlement for two millennia, its history going back to its...
firm of Thomas de la Rue & Co. Ltd.
De La Rue
De La Rue plc is a British security printing, papermaking and cash handling systems company headquartered in Basingstoke, Hampshire. It also has a factory on the Team Valley Trading Estate, Gateshead, and other facilities at Loughton, Essex and Bathford, Somerset...
. A five-dollar and a ten-dollar note both dated 8 June 1909, were printed Thomas de la Rue & Co. Ltd.
De La Rue
De La Rue plc is a British security printing, papermaking and cash handling systems company headquartered in Basingstoke, Hampshire. It also has a factory on the Team Valley Trading Estate, Gateshead, and other facilities at Loughton, Essex and Bathford, Somerset...
.
King George V
George V of the United Kingdom
George V was King of the United Kingdom and the British Dominions, and Emperor of India, from 6 May 1910 through the First World War until his death in 1936....
(1910 - 1936)
During this reign the range of currency notes was extended up to one thousand dollars for the convenience of inter-bank clearing transactions. In 1915, it was decided to make a complete change in the design of the 50, 100 and 1000 dollar notes. These denominations were first issued to the public in February 1920, October 1919 and May 1917 respectively. They were printed by Thomas de la Rue
De La Rue
De La Rue plc is a British security printing, papermaking and cash handling systems company headquartered in Basingstoke, Hampshire. It also has a factory on the Team Valley Trading Estate, Gateshead, and other facilities at Loughton, Essex and Bathford, Somerset...
. A 10,000 note was first issued in October 1922. This was not available to the public, but was used exclusively in inter-bank transfers.
King Edward VIII
Edward VIII of the United Kingdom
Edward VIII was King of the United Kingdom and the Dominions of the British Commonwealth, and Emperor of India, from 20 January to 11 December 1936.Before his accession to the throne, Edward was Prince of Wales and Duke of Cornwall and Rothesay...
(1936)
No special issue of notes was made during this brief reign.
King George VI
George VI of the United Kingdom
George VI was King of the United Kingdom and the Dominions of the British Commonwealth from 11 December 1936 until his death...
(1936 - 1952)
In September 1933, Sir Basil Blackett
Basil Blackett
Sir Basil Phillott Blackett KCB KCSI was a British Civil Servant and expert on international finance.Blackett was the eldest son of Rev. William Blackett, a missionary and educationalist in India and his wife Grace Phillott. He was born in Calcutta and educated at Marlborough College...
was appointed by the Secretary of State for the Colonies
Secretary of State for the Colonies
The Secretary of State for the Colonies or Colonial Secretary was the British Cabinet minister in charge of managing the United Kingdom's various colonial dependencies....
to lead a commission to consider the participation of the various Malay States, including Brunei
Brunei
Brunei , officially the State of Brunei Darussalam or the Nation of Brunei, the Abode of Peace , is a sovereign state located on the north coast of the island of Borneo, in Southeast Asia...
, in the profits and liabilities of the Straits Settlements
Straits Settlements
The Straits Settlements were a group of British territories located in Southeast Asia.Originally established in 1826 as part of the territories controlled by the British East India Company, the Straits Settlements came under direct British control as a crown colony on 1 April 1867...
currency. The Blackett Report recommended that the sole power of issuing currency for the area should be entrusted to a pan-Malayan Currency Commission. This recommendation was adopted by the Government of the Straits Settlements, the Federated Malay States
Federated Malay States
The Federated Malay States was a federation of four protected states in the Malay Peninsula—Selangor, Perak, Negeri Sembilan and Pahang—established by the British government in 1895, which lasted until 1946, when they, together with the Straits Settlements and the Unfederated Malay...
, Unfederated Malay States
Unfederated Malay States
The term Unfederated Malay States was the collective name given to five British protected states in the Malay peninsula in the first half of the twentieth century. These states were Johor, Kedah, Kelantan, Perlis, and Terengganu...
and Brunei
Brunei
Brunei , officially the State of Brunei Darussalam or the Nation of Brunei, the Abode of Peace , is a sovereign state located on the north coast of the island of Borneo, in Southeast Asia...
. Legislation was enacted by the Straits Settlements Currency Ordinance (No. 23) of 1938, and ratified by the various states during 1939 and the Malayan dollar
Malayan dollar
The dollar was the currency of the British colonies and protectorates in Malaya and Brunei until 1953. It was introduced in 1939, replacing the Straits dollar at par, with 1 dollar = two shillings four pence sterling .-Board of Commissioners of Currency, Malaya formed:The Malayan dollar was issued...
became legal tender in the Straits Settlements.