The Origins of Straits Settlements Dollar (Part 1 of 3)

Violent fluctuation of  gold and silver between 1893 to 1896 has raised the necessity to stabilize the value of local dollar (British Trade Dollar) at that time. From 1895-1903, British trade dollar is accepted as the standard silver dollar in Straits settlements as stipulated in the Ordinance 1895.


A committee was appointed by Singapore Chamber of Commerce to enquire into local currency and question of a Gold Standard. The committee however did not enforce any change due to criticism from the Federated Malay States, which was formed in 1895.

The evolution of Malaysia. Source: Wikipedia.

As silver price continue to fall, on 1902, a commission was appointed to consider changing from a Silver Standard to Gold Standard, with the objective of stabilizing the rate of exchange of the silver dollar in London.

The commission noticed that there are NO STANDARD COIN peculiar to the Colony and the neighboring Malay States. Hence, the commission made the following recommendations:

1. A straits settlements dollar should be introduced of the same weight and fineness as the existing British trade dollar
2. British, Mexican and other dollars should be demonetized as soon as adequate supply of the new coins was available.
3. Coinage of the new dollar should cease as soon as sufficient supply was in circulation and its exchange value had reached the value in relation to the gold sovereign that should be settled as the future value of the straits dollar.

The report was made on 17th May 1903, and immediate actions was taken to carry out the recommendations concerning the issue of a straits settlements dollar and eventual plan of bringing the colony to a gold standard.

This marked the birth of the straits settlements dollar. Between 1903 and 1904, a total of 35 million new straits settlements dollars were minted. (Refer mintage table page above)

With regards to the British Trade Dollar

1. It ceased to be the silver dollar for straits settlements and British Malay colonies from 1903 onwards.
2. It essentially became the Hong Kong trade dollar only from then onwards.
3. It also explains the low mintage of 1904 British Trade Dollars of only 690,000 + as the Bombay mint capacity is now focused on minting the new straits settlements dollars

End of part 1.... Continue part 2(specifications of Straits settlements dollars)