The quarter and half dollars so introduced would of course be tokens contain- ing 20 per cent. of alloy, but so far from this being a disadvantage, it might very possibly suffice to prevent the export of these coins to China, which, in the case of the present subsidiary coinage, drains the Colony of it as fast as it is imported. I am told that these coins are now in common use in Canton, throughout the Kwang- tung province, and are even beginning to be seen in the North. There is perhaps no great objection to China's being supplied with coin through this Colony, except that we cannot keep sufficient here. The following figures will shew that the large importations of silver coin we have lately made have not in the least tended to overstock the Colony, for the premium in the ordinary market on ten cent pieces
was :-
On May 1, 1883,......
32
November 6, 1883.. May 2, 1884, September 4, 1884,
1
.9 per cent.
1.4
1 31
The Chinese are well aware that these coins are alloyed, but their extreme convenience over-balances the popular prejudice against alloyed silver. A half- dollar, however, is a more serious matter to a native than 10 cents, and I think it quite possible that a token half-dollar, whilst passing here freely enough, might command no great circulation on the mainland. If this turned out to be the case, it would be a great boon to this Colony, for we could then keep here a respectable and fairly portable coinage for our own local use.
The experiment would have to be made with caution, for it would not do to encumber the Government with a large shipment of an unpopular coin. But even if the new half-dollar were a little unpopular at first, the eagerness of the Chinese to get five and ten cent pieces would float off any moderate quantity, if (as at pre- sent) the rule were enforced of issuing all denominations of coins together.
loss.
No attempt to provide a half-dollar of par value could be made without serious
I make no proposals at present about any definite supply, as it will probably be thought advisable to refer the general question home first.
I have the honour to be,
Sir,
Your most obedient Servant,
A. LISTER,
Treasurer.
The Hon. W. H. MARSH, C.M.G.,
Colonial Secretary.
The Government would be much obliged to the Manager of the Hongkong and Shanghai Bank, if he would state his views in this recommendation.
4th September, 1884.
To the Honourable T. JACKSON.
W. H. MARSH,
Colonial Secretary.
Memo. for the Colonial Secretary.
I do not agree with the Treasurer that token coins of the value of twenty- five cents, and fifty cents each should be introduced into Hongkong.
I am of opinion that the present subsidiary issue of five, ten, and twenty cent pieces meets the requirements of the Colony.
The export of subsidiary coins from Hongkong ought not to be looked upon as a grievance, considering that there is a large profit upon them; I think the profit upon said coins might be increased by judicious purchases of Silver in London from time to time when favorable opportunities occur. An ample supply of subsidiary coins ought always to be kept in Hongkong.
The proposed method of forcing the half dollar token coins into circulation I consider most arbitrary, and unworthy of the Government of this Colony.
T. JACKSON, Chief Manager,
Hongkong and Shanghai Bank.
Hongkong, 6th September, 1884.