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1935 Straits Settlement King George 1 Dollar Note. There is no tear or any pin hole. The Straits dollar was the currency of theStraits Settlements from 1898 until 1939. At the same time, it was also used in theFederated Malay States, the Unfederated Malay States, Kingdom of Sarawak, Brunei, and British North Borneo. History 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, most significantly Mexico. Locally issued coinages included the Kelantan andTrengganu keping, and the Penang dollar. In 1837, the Indian rupee was made the sole official currency in the Straits Settlements, as it was administered as part of India. However, Spanish dollars continued to circulate and 1845 saw the introduction of coinage for the Straits Settlements using a system of 100 cents = 1 dollar, with the dollar equal to the Spanish dollar or Mexican peso. In 1867, administration of the Straits Settlements was separated from India and the dollar was made the standard currency. From 1898, the Straits dollar was issued by a new Board of Commissioners of Currency and private banks were prevented from issuing notes. Its value depreciated over the next eight years and was then pegged at atwoshillings four pence sterling in 1906. The Straits dollar was replaced at par by theMalayan dollar in 1939. To this day, Brunei and Singapore still use the successor to this unit, but Malaysia broke away in 1973.

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