British Empire Ordinance Year 1895 on Silver Dollars and Its implications (PART 1)

Indian Currency Committee was formed in 1893 by appointment by the Secretary of State for the colonies to consider the currency in the British Far Eastern  possessions. It made no recommendations regarding the standard currency in the Straights Settlements; however, it did advocate the issue of British dollar for circulation in the Settlements and to other eastern possessions.

In 1894, one year later, The Hong kong Chamber of Coomerce brought up this matter again due to the scarcity of Mexican dollars which has threathened the British trading in the east. It received widespread support from the bankers and others with commercial relations with the Straits Settlements, Hong Kong and including chamber of commerce in London.

Hence by Order in Council dated 2nd February 1895, a new coinned British Trade Dollar became legal tender in Hong Kong, Straits Settlements and Labuan. The opportunity was also taken to review the existing laws regulating the coinages of these british colonies.

By the same Order in Council, also dated 2nd February 1895, all previous monetary laws of the Straits Settlements were repealed and new regulations introduced.

The essences in the Ordinance are:

1. Mexican Dollar still remained the standard coin for trading

Additional dollars were given equal LEGAL TENDER status. These coins were;

A. British Trade Dollar (newly coined from 1895)

B. Hong Kong Dollar coined between 1865-1868

C. Japanese Yen dollars

3. The new order omitted the United States trade dollar, which was previously sanctioned by the Governor's regulation of 1874.  Minting of the US trade dollar had ceased on 19th February 1887, and by this time 1895, it is rarely seen in Far East.

Reference:
Coins and Coinages of the Straits Settlements and British Malaya 1786 to 1951 by Major F. Pridmore, pg 46-47Spink & Son LTD, London 1968.