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3. Without necessarily accepting either the statement in this paragraph as to the actual discount at which the British coin is now reported to stand, or that which gives the percentages of relative values in the past, the Committee do not wish to question your general remarks of a retrospective nature.
It would appear that the large demand for Hongkong subsidiary coin arose in the Southern Provinces of China, and while the Colony at the moment undoubtedly benefited by the then existing state of affairs, it was not to be expected that this outside source of revenue would continue indefinitely and a change, brought about by among other causes an over-production of Chinese subsidiary coin, should not be looked upon as a matter calling for legislation on the part of the Government.
The second part under this head seems to imply a change in the difference of fineness between the Hongkong and Canton subsidiary coin of the present as compared with that of the past but of this the Committee have no evidence.
4/5. It must be admitted that the over-production of Chinese subsidiary coin has resulted in its depreciation and has also reduced the demand for Hongkong coin, but it is an error to suppose that a debtor can discharge his liabilities in this subsidiary coin, though for sake of convenience no doubt many small debts are so settled.
No one in the Colony need accept Chinese subsidiary coin at all, while the legal limit for Hongkong subsidiary silver coin is $2.00, and for copper $1.00. If payments are accepted in Chinese coin, or Hongkong coin in excess of the legal limit, this is entirely a personal matter between debtor and creditor and is presumably due to causes not to be controlled by Ordinance, being merely an ordinary business question for consideration when fixing the price of commodities.
6/7. The developments foreshadowed in paragraph 7 are problematical. The Com- mittee of the Chamber, while viewing the excessive production of silver and copper coins by the Chinese Mints as calculated to seriously affect the prosperity of that Empire, have no reason to assume that the Chinese Officials are actuated by other motives than the supplying of a useful medium of exchange, for which there was, at one time at all events, a strong demand, and the making of a profit on the seigniorage as is usual in other countries making similar issues.
8. The existence of the Provincial Bauk $1.00 note is of course known. It now bears a special stamp to the effect that it is redeemable in 20 cent pieces. It is noteworthy however that the $5.00 notes are not so stamped.
9. After carefully considering the question the Committee of the Chamber are of opinion that the only course likely to influence remedial measures is to communicate with the Chambers of Commerce at Shanghai and Tientsin with a view to sending another joint Memorial to the Diplomatic Body at Peking urging that the Imperial Government should again be called upon to carry out its treaty obligations, and by placing all the mints under one control, produce a standard coinage for the whole Empire and so do away with the over- production of subsidiary coinage for which the various Provincial Authorities are now responsible.
10. With regard to the suggested remedy that British subsidiary coin should be made legal tender up to any extent and that the Government should pledge itself to redeem all such coins at par, the Committee of this Chamber are altogether unable to endorse such a proposal, nor can they as matters now stand see their way to make any representation to the Hongkong Government with regard to legislation.
Hon. Mr. EDWARD OSBORNE,
Secretary,
STAR FERRY COMPANY, LIMITED.
I have, &c.,
EDBERT A. HEWETT,
Chairman.