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The Straits dollar was the currency of the Straits Settlements from 1898 until 1939. [1] At the same time, it was also used in the Federated Malay States, the Unfederated Malay States, Kingdom of Sarawak, Brunei, and British North Borneo.
In the early nineteenth century, the most common currency used in the East Indies was the Spanish dollar, including issues both from Spain and from the new world Spanish colonies, which for the East Indies emanated from the Philippines in the Spanish East Indies originating from Mexico and Peru as part of the Spanish colonial empire. Locally issued coinages included the Kelantan and Trengganu keping, and the Penang dollar.
In 1826, the Straits Settlements were formed under the auspices of the East India Company. The East India Company attempted to implement the Indian rupee as the sole official currency in the Straits Settlements, however it was unsuitable for trade and Mexican dollars (the successor to the Spanish dollar) continued to be used for trade. Private banks also printed their own private banknotes which were redeemable to silver dollars. [2]
1844 saw the authorization of copper coinage for the Straits Settlements using a system of 100 cents = 1 dollar, with the dollar equal to the Spanish dollar or its regional successors within the Spanish Empire such as the Philippine peso or Mexican peso. This coinage was declared current in the Straits Settlements on 1 June 1847. [3]
In 1867, the administration of the Straits Settlements were transferred to the British colonial office, and the Indian rupee also lost its status as legal tender within the Straits Settlements. [2]
However, due to a shortage of silver dollars from the Spanish Empire, the British also began issuing trade dollars in 1895. [2]
The Board of Commissioners of Currency for the Straits Settlements was created in 1897, and from 1899 began issuing Straits Settlement currency notes. Private banks were also prohibited from issuing new banknotes. [2]
In 1903, the board issued the Straits dollar, valued at par with the British trade dollar, while also demonetizing the British, Mexican, and other silver dollars. [2] In 1906, the Straits dollar was pegged to two shillings four pence (or twenty-eight pence) sterling, which was in turn on a gold standard at the time. [4]
In 1931, the sterling was taken off the gold standard, putting the Straits dollar on a sterling-exchange standard. [2]
The Straits dollar was replaced at par by the Malayan dollar in 1939.
Brunei and Singapore acknowledged the successor to this currency unit, although Malaysia rescinded in 1973. A memorandum of understanding, Currency Interchangeability Agreement, was signed between the Brunei–Singapore relations which makes both Brunei dollar and Singapore dollar banknotes and coins legal tender vice versa in each other's country. [5] [6]
The first coins issued for the Straits Settlements in 1845 were 1⁄4, 1⁄2 and 1 cent denominations in copper. They were issued by the East India Company and did not bear any indication of where they were to be used. The original dies were engraved by William Wyon, Chief Engraver at the Royal Mint. They were first struck at the Calcutta Mint, and later in 1858 also at the Madras Mint. [7]
In 1858, administration of the Straits Settlements was transferred from the East India Company to the Crown, and the Straits Settlements came under the Government of British India. A second issue of the same denominations was struck in 1862 at the Indian Government Mint, Calcutta. These bore the inscription "India – Straits". [8]
In 1871, silver coins were issued in the name of the Straits Settlements for 5, 10 and 20 cents, followed by copper 1⁄4, 1⁄2 and 1 cent the next year and silver 50 cents in 1886. Silver dollars were first minted in 1903. [9]
A 3-page special issue of the Straits Settlements Government Gazette published in Singapore on 24 August 1904, contained the following proclamation by then Governor, Sir John Anderson:
From 31 August 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. 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 1⁄4 cent coins were issued in 1916. Dollars were last struck for circulation in 1926, with 50 cents production ending in 1921. The remaining coins continued in production until 1935.
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.
The Government of Straits Settlements was first authorised to issue currency notes by Ordinance VIII of 1897 during Queen Victoria's reign, 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.
Edward VII 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 demonetised by 1904. A steep rise in the price of silver, however, soon forced the government to call in 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.
The Chinese text on top of the banknote reads: 叻嶼呷國庫銀票, 叻嶼呷 is the abbreviation for the Straits Settlements (叻 = Singapore, 嶼 = Penang Island, 呷 = Malacca). It is roughly equivalent to "banknote of the Straits Settlements". The Malay text is rendered in Jawi script at the bottom and three Straits Settlements are also explicitly given: Wang (واڠ) kertas (قرطاس, the Arabic spelling is used) ini kerajaan tiga (تيݢ) buah negeri iaitu Singapura, Pulau Pinang, dan Melaka mengaku pembayarannya.
During George V's 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.
No special issue of notes was made during the brief reign of Edward VIII.
In September 1933, Sir Basil Phillott 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, in George VI's reign, and ratified by the various states during 1939 and the Malayan dollar became legal tender in the Straits Settlements. [10]
The Australian dollar is the official currency and legal tender of Australia, including all of its external territories, and three independent sovereign Pacific Island states: Kiribati, Nauru, and Tuvalu. As of 2022, it is the sixth most-traded currency in the foreign exchange market and also the seventh most-held reserve currency in global reserves.
The British crown was a denomination of sterling coinage worth 1⁄4 of one pound, or 5 shillings, or 60 (old) pence. The crown was first issued during the reign of Edward VI, as part of the coinage of the Kingdom of England.
Legal tender is a form of money that courts of law are required to recognize as satisfactory payment for any monetary debt. Each jurisdiction determines what is legal tender, but essentially it is anything which when offered ("tendered") in payment of a debt extinguishes the debt. There is no obligation on the creditor to accept the tendered payment, but the act of tendering the payment in legal tender discharges the debt.
The Hong Kong dollar is the official currency of the Hong Kong Special Administrative Region. It is subdivided into 100 cents or 1000 mils. The Hong Kong Monetary Authority is the monetary authority of Hong Kong and the Hong Kong dollar.
The Malaysian ringgit is the currency of Malaysia. It is divided into 100 sen. The ringgit is issued by the Central Bank of Malaysia.
The Brunei dollar, has been the currency of the Sultanate of Brunei since 1967. It is normally abbreviated with the dollar sign $, or alternatively B$ to distinguish it from other dollar-denominated currencies. It is divided into 100 sen (Malay) or cents (English). The Brunei dollar is issued by the Brunei Darussalam Central Bank.
The Belize dollar is the official currency in Belize. It is normally abbreviated with the dollar sign $, or alternatively BZ$ to distinguish it from other dollar-denominated currencies.
The Singapore dollar is the official currency of the Republic of Singapore. It is divided into 100 cents. It is normally abbreviated with the dollar sign $, or S$ to distinguish it from other dollar-denominated currencies. The Monetary Authority of Singapore (MAS) issues the banknotes and coins of the Singapore dollar.
The Macanese pataca or Macau pataca is the currency of the Macao Special Administrative Region of the People's Republic of China. It is subdivided into 100 avos, with 10 avos called ho (毫) in Cantonese.
The British West Indies dollar (BWI$) was the currency of British Guiana and the Eastern Caribbean territories of the British West Indies from 1949 to 1965, when it was largely replaced by the East Caribbean dollar, and was one of the currencies used in Jamaica from 1954 to 1964. The monetary policy of the currency was overseen by the British Caribbean Currency Board (BCCB). It was the official currency used by the West Indies Federation The British West Indies dollar was never used in British Honduras, the Cayman Islands, the Turks and Caicos Islands, the Bahamas, or Bermuda.
The pound was the currency of Australia from 1910 until 14 February 1966, when it was replaced by the Australian dollar. Like other £sd currencies, it was subdivided into 20 shillings, each of 12 pence.
The pound was the official currency of Jamaica between 1840 and 1969. It circulated as a mixture of sterling coinage and locally issued coins and banknotes and was always equal to the pound sterling. The Jamaican pound was also used in the Cayman and Turks and Caicos Islands.
The pataca was a monetary unit of account used in Portuguese Timor between 1894 and 1958, except for the period 1942–1945, when the occupying Japanese forces introduced the Netherlands Indies gulden and the roepiah. As in the case of the Macanese pataca which is still in use today, the East Timor unit was based on the silver Mexican dollar coins which were prolific in the wider region in the 19th century. These Mexican dollar coins were in turn the lineal descendants of the Spanish pieces of eight which had been introduced to the region by the Portuguese through Portuguese Malacca, and by the Spanish through the Manila Galleon trade.
The Malayan 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.
The British North Borneo dollar was the currency of British North Borneo from 1882 to 1953. It was subdivided into 100 cents. The dollar had remained at par with the Straits dollar, the currency of Malaya and Singapore, at the value of one dollar to 2 shillings 4 pence sterling from its introduction until both currencies were replaced by the Malaya and British Borneo dollar in 1953. Both coins and banknotes were issued by the British North Borneo Company.
The dollar was the currency of the Raj of Sarawak from 1858 to 1953. It was subdivided into 100 cents. The dollar remained at par with the Straits dollar and its successor the Malayan dollar, the currency of Malaya and Singapore, from its introduction until both currencies were replaced by the Malaya and British Borneo dollar in 1953.
The dollar was the currency of the colony of Newfoundland and, later, the Dominion of Newfoundland, from 1865 until 1949, when Newfoundland became a province of Canada. It was subdivided into 100 cents.
The Japanese government-issued dollar was a form of currency issued for use within the Imperial Japan-occupied territories of Singapore, Malaya, North Borneo, Sarawak and Brunei between 1942 and 1945. The currency was also referred to informally as banana money, named as such because of the motifs of banana trees on 10 dollar banknotes. The Japanese dollar was in widespread use within the occupied territories where the previous currency became scarce. The currency were referred to as "dollars" and "cents" like its predecessors, the Straits dollar, Malayan dollar, Sarawak dollar and British North Borneo dollar.
The pound was the currency of Bermuda until 1970. It was equivalent to sterling, alongside which it circulated, and was similarly divided into 20 shillings each of 12 pence. Bermuda decimalised in 1970, replacing the pound with the Bermudian dollar at a rate of $1 = 8s.4d., equal to the US dollar.
Prior to European colonization, early Aboriginal Australian communities traded using items such as tools, food, ochres, shells, raw materials and stories, although there is no evidence of the use of currencies.
| Preceded by: Indian rupee Reason: administration separated from India | Currency of Straits Settlements 1845 – 1901 Concurrent with: Indian rupee (1845-1867) | Currency of Brunei, Straits Settlements 1901 – 1939 | Succeeded by: Malayan dollar Location: Straits Settlements, Federated Malay States, Brunei, Labuan |
| Preceded by: Brunei pitis Reason: protectorate agreement | |||
