'Papers Respecting the Slave Trade on the East Coast of Africa and the System Pursued for its Suppression' [‎45r] (29/72)

29
will be estimated at its intrinsic value as determined at the Bombay Mint, the German
crown being the unit.
(Signed) JOHN KIRK,
Acting British Consul and Political Agent A mid-ranking political representative (equivalent to a Consul) from the diplomatic corps of the Government of India or one of its subordinate provincial governments, in charge of a Political Agency. .
Zanzibar, November 12, 1868.
Inclosure 3 in No. 35,
Dr. Kirk to the Secretary to Government, Bombay,
Sir, Zanzibar, November 12, 1868.
I HAVE the honour to communicate, for the information of his Excellency the
Governor in Council, that the long debated question of the Zanzibar currency has at last
been brought to an end.
The difficulties experienced in the settlement of this affair arose entirely from the
conflicting interests of the various nationalities here represented. The Americans were
naturally unwilling to lose the advantage they had gained, while French merchants,
now the chief importers of coin, labouring under a serious disadvantage, were anxious for
an immediate change.
As far as English interests were concerned, I believe we occupied a neutral position;
what we lost by the undervaluation of a sovereign was far more than balanced by the
premium on the rupee.
On the 1st of November, the agreement entered into by the Sultan and the American
Council, and tacitly concurred in by the other Consulates, had expired, and as the Sultan
showed little disposition to move in the matter as he had promised, I addressed a letter to
His Highness requesting to be informed which coin had been decided on as the future
dollar of the Zanzibar State, whether it would be the German crown as before, or the
American dollar, now artificially its equivalent. I pointed out at the same time, through
his Secretary, that on learning the unit of account selected by His Highness, I should
be in a position to inform him as to the relative intrinsic value of the English and Indian
coin.,
His Highness intimated at once, through his Secretary, that the silver German dollar
of Maria Theresa, known here as the " shami" dollar, had always been, and would
continue to be, the money of Zanzibar; but he said that he found himself in a difficult
position, as the Americans urged strongly for two years' delay previous to any change, and
were prepared to assert that by equalizing their coin to the German dollar he had taken
the American gold as the money of account in terms of which they had kept their
accounts.
Such an act as this would amount to virtual repudiation of their debts, which are
chiefly due to British Indians, to the amount of 2 per cent., for which there could be no
remedy short of a lengthened lawsuit in America.
I therefore consented to a compromise, allowing one year to elapse before the
commencement of the new rule, by which the black continues to be the standard of
account throughout the Kingdom of Zanzibar; while all other money, of whatever nation,
is left to take its market value, as is at present the case with the copper currency.
To this agreement the American and the German Consuls have placed their names
and I find the measure gives great satisfaction to the British Indian population, who by
the sudden depreciation of the American coin would have been serious losers.
But little confusion is likely to be experienced by the fluctuation of coin. At the
present day no one would think of making large payments in depreciated coin which
command almost their true value in the market.
In order to give confidence, and to save trouble in the adjudication of claims in Her
Majesty's Consular Court after that date at their intrinsic value as determined bv the
Bombay Mint.
What the ultimate result of this measure of the Sultan may be it is difficult to
predict. The Americans have ceased to import coin, finding cotton goods more profitable.
While the French, even now under existing circumstances, have become the chief
importers of coin.
I must state that, in my opinion, His Highness has dons wisely in retainino- the old
German crown as his unit of account.
I have the honour to forward copies of His Highness' Proclamation and the notifica-
L 341 J X