§ 14. Commander WEDGWOOD
asked the Secretary of State for the Colonies whether German rupees are being accepted as legal tender in East Africa and Mafia; whether he is aware that they are only worth 8½d. in silver, so that there is a 50 per cent, loss on such acceptance; whether German paper money is being accepted at a discount, thus bolstering up German credit; and, if so, will he say which Government Department is responsible for this action?
§ The SECRETARY of STATE for the COLONIES (Mr. Bonar Law)
The provisional arrangements as to currency have been made by General Smuts, who, however, has directed that German currency notes and Imperial German coin are not to be recognised. I consider that his action is necessary, for the present, to avoid loss to the natives and consequent unrest; and I have approved the adoption of similar measures in the southern portion of the occupied territory under the immediate control of General Northey.