I am, however, to add that My Lords hope that the large profit male by the Colonial Government upon the issue of these silver Tokens for circulation not within the limits of the Colony, but on the mainland of China, is not leading them to lose sight of the serious risk, that is continually augmenting, of future embar- rassment to the Colonial Treasury through the return of worn tokens for exchange, at their full nominal value, in possibly very large quantities at once.
The Colonial Government is of course under no obligation to furnish a medium of exchange to the Chinese Empire, and if Chinese subjects choose to buy Hongkong tokens for their own convenience, they could not complain if the Hongkong Government were to refuse to repurchase them, from holders resident in China, at the price of issue. But the question is whether it will be possible, when the coins circulating in China are defaced by unfair means perhaps) to prevent Hongkong dealers from collecting them at a discount, and then presenting them to the Treasury for redemption at par.
My Lords hope that this subject may be carefully considered before the next demand for Hongkong Token coins is made.
The Under-Secretary of State,
Colonial Office.
HONGKONG. No. 17.
SIR.
I am, &c.,
(Signed),
R. E. WELBY,
(11)
DOWNING STREET,
4th February, 1887.
I have the honour to transmit to you a copy of a letter from the Treasury stating that the mint has been directed to supply the subsidiary coins asked for in your despatch No. 362 of the 15th of November last, and drawing attention to the danger of the issue of these coins in large quantities for use outside the Colony.
I see that my predecessor drew Sir GEORGE BOWEN's attention to this question in a despatch dated the 17th of August, 1885, No. 34.
I have the honour to be,
The Officer Administering the Government of
Sir,
Your most obedient humble Servant,
H. T. HOLLAND.
No. 10.
HONGKONG.
(12)
SIR,
TREASURY, HONGKONG, 6th April, 1887.
I have the honour to acknowledge the receipt of your letter No. 367 of the 16th instant, transmitting for my consideration and report a despatch from the Secretary of State, No. 17 of February 4th, on the supply of subsidiary coin to this Colony, and its use in China.
2. In an enclosure to that Despatch the Lords of the Treasury express› through their Secretary, a hope "that the large profit made by the Colonial Govern- ment upon the issue of these silver Tokens for circulation, not within the limits of the Colony, but on the mainland of China, is not leading them to lose sight of the serious risk, that is continually augmenting, of future embarrassment to the Colo-. nial Treasury through the return of coins for exchange at their full nominal value, in possibly very large quantities at once.'
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