HONGKONG.
No. 1907
32
CORRESPONDENCE ON THE SUBJECT OF HONGKONG SUBSIDIARY COINS.
Laid before the Legislative Council by Command of
His Excellency the Officer Administering the Government.
HONGKONG.
Confidential.
GOVERNMENT HOUSE,
HONGKONG, 23rd July, 1906.
MY LORD, Referring to Your Lordship's despatch No. 100 dated the 24th May, 1906, I have the honour to report further on the subject of the disposal of the subsidiary coin then in the Hongkong and Shanghai Bank.
2. In my despatch No. 96, dated the 20th April, 1906, I stated that the rate of discount on Hongkong subsidiary coin in the Canton market then stood at about one-half to one per cent., but that I was advised to take no action towards dispos- ing of this coin until the result of the next selling season had been ascertained. On the 15th May the discount bad gone up to over 4% and the Treasurer reported that he had consulted the Chief Manager of the Hongkong and Shanghai Banking Corporation who had stated that the prospects for the sale of the coin were not improving. The Canton rice crop had been seriously damaged by floods, it was feared that the silk might also have suffered, and Chinese brokers considered that in view of the manner in which dollars had been replaced by Chinese subsidiary coins in the Kwang Provinces there would be no chance of Hongkong subsidiary coins being required in those provinces in the near future. The Treasurer recommended that the bulk of this coin should be reshipped home for sale as bullion.