September 1, 1897.)
7)
183
neither difficulty nor loss to the Government. Japan made a mistake in her scheme of con- version in adopting a ratio approximate to the rate prevailing at the time the operation was decided upon and allowing a long period to elapse before bringing it into effect. This mistake Was recognised in many quarters at the time and has been taken advantage of in the open market to Japan's cost. If a conversion scheme for Hongkong were decided upon it should be carried through rapidly and the ratio at which silver dollars would be exchanged for the new gold coin should be one which would allow for any further fall of silver that might take place during the period the no- tice was running.
CHINA OVERLAND TRADE REPORT.
as well as those arriving by sea. That given addresses in order that medical surveil" would be quite a simple matter, as the lance may be exercised over them. The re frontier is guarded by the Chinese sult would probably be that only those who Customs and passage only allowed at certain had pressing business would come, and that points. But as a matter of fact the apprehen there would be a considerable diminutiou in sion expressed with regard to the Kowloon the volume of immigration, leaving only a land. traffic is a mere straining at a goat; small number over which to exercise sur- there is practically no danger to be appre-veillance. It is true a man who wished to hended from that quarter, whereas it is escape surveillance might possibly do so by known that many of the cases of infectious coming via Canton, but it would hardly pay disease that occur in the colony are im him for the extra cost of passage, loss of time, ported by sen. As to the sufficiency of the and inconvenienes, and when he arrived he present regulations, that argument was would still be subject to medical inspection, completely demolished at the last meeting which in itself affords a safeguard, and he of the Sanitary Board by the Hon. F. II. would also be exposed to the risk of having May, who, however, was speaking in support his port of origin detected, in which case his of it. In a minute the hon. gentleman expedient for escaping surveillance would wrote:-"I think our present system has prove ineffective. Mr. MAY says it is the sur- worked well and should be adhered to; veillance on shore that he regards as imprac but in the course of the discussion he said: ticable, from which it is to be inferred that THE COST TO HONGKONG OF ITS
JOLD LOANS. "Take the port of Swatow, against which he does not consider the inspection of ships we issued a proclamation only this year. and their passengers impracticable. Mr. The coolies went from there to Canton, MAY ought to know something about transhipped, and came on here by the surveillance on shore, but we venture to Canton steamier and laughed up their think that passengers arriving strange to sleeves at the Hongkong Government." the colony would find it extremely difficult A more convincing argument in favour of to eva le surveillance if it were decided to the medical inspection of all vessels arriving enforce it. And, moreover, why should in the harbour could hardly be imaginel, they wish to evade it? It is nothing As to the costliness of the proposed system of for a healthy man to be afraid of. examination, another point on which con- siderable stress has been laid, we think it will be admitted that whether two, or four, or six doctors are requirel to carry it out the colony will be well recouped for the outlay on their salaries if we thereby purchase immunity from epidemic disease or in any considerable degree diminish the risk of its introduction. The only vital questions are the practicability and efficiency of the proposed system; if those are answered in the affirmative the cost will not be a -matter to lament over.
II.
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In the year 1887 Hongkong contracted a gold loan of £200,000, which realised $1,263,158. In 1893 another gold loan of £200,000 was contracted, which realised $1,536,000.
Altogether the colony has borrowed $2,799,158, and after paying back £60,000, say $370,000, it owes at the present time about $3,800,000. The case is some- thing like that of the Dock Company and
A SILVER OR GOLD CURRENCY FOR its Admiralty loan: the Company goes on
HONGKONG.
bave been closed, Japan has declared in favour of a gold standard, and the dollar is shrinking in
an
steadily paying off the loan year by year according to agreement, but year Shall we throw the silver dollar over and by year the amount it Owes con- cut the loss? This is the form in which tinues to increase, and according to the the exchange question must now present itself statement of the Chairman of the Com- in the Eastern colonies. At Singapore the pany at the meeting the other day the Committee of the Chamber of Commerce is Government declines to receive payment considering the matter, and is said to have at once of the whole some due in sterling and addressed the Hongkong Chamber upon it. thus allow the Company to clear itself of In any case it is to be presumed that our local further loss. It would, however, probably Chamber would not lose sight of the import-be good policy on the part of the Company ant bearing the silver question has upon the to turn part of its reserve fund into sterling In another column : ¡ears a letter from prosperity of the colony. Hitherto it has and invest it in London on terms which the interests of would admit of the payment of the instal- the Hon. F. H. MAY, in which he says been considered that
ments of the Admiralty loan as they became that we quote his remark made at the last Hongkong were linked with the silver meeting of the Sanitary Board regarding standard and any suggestion of going upon due. By this means, although the interest. Swatow coolies going to Canton in an en- a gold basis has been regarded as impractic-received would be small, the continually tirely wrong connection. We certainly able and, we might almost say, insane. recurring loss on the loan would be elimin- quoted it in a different connection from that But events have moved rather rapidly ated from the accounts. It would be a good in which Mr. MAY used it, as plainly ap-within the last few years; the Indian mints thing for the colony if it could carry through peared, for we mentioned that he made the
a similar operation, raising a silver loan remark while arguing on the opposite side to
locally to pay off its sterling indebtedness. value to The present loan has a currency of fifty years, that which we were advocating, but we main tain the connection was not a wrong one.
extent that makes its
ac and the stockholders would naturally be continued The remark embodied a plain statement of ceptance as a standard coin ridiculous. unwilling to accept payment before the due fact, and facts are equally open to the use No hope is to be discerned for silver, in date, but the amount of a new loan might of disputants on either the one side or the whatever direction we look, but, on the be invested in sterling securities yielding other. In order to show the difficulty of contrary, there is every possibility of its interest sufficient to keep up the sinking exercising surveillance over passengers ar- falling to still lower and as yet undreamed fund on the present loan. That would be riving from an infected port Mr. MAY quoted of depths. It is not even the standard of rather a large undertaking, from which the the fact that during the time Swatow was an China, where values are measured by Government might possibly shrink even if infected port coolies went from Swatow to copper cash, and its decline is felt there as it had a free hand in the matter, which, Canton and from Canton came to Hong well as elsewhere. Although none of the however, it has not, for it may be taken kong, laughing in their sleeves at the present generation may live to see it, there can for granted that the Colonial Office not sanction anything of the Hongkong Government. We quoted the scarcely be a doubt that China will sooner would
If there are any loans to be same fact to show that medical inspection or later be compelled to adopt a gold stand- kind. would afford an additional security to ard, to bring herself into line with the other raised the Colonial Office insists that the the colony, inasmuch as passengers from great commercial countries of the world. business must go to London, no matter at an infected port would not be able to get What, then, has Hongkong to gain by ad- what cost to the colony. When the first into the colony without inspection simply hering to a silver currency? Changes in loan was raised, although no one imagined by adopting the expedient of coming by such matters are not to be lightly decided that exchange was going to descend to its a circuitous route. With regard to sur upon, but it would seem that the time has present low depths, it was foreseen the colony veillance, the number of persons over arrived when the adoption of a gold stand- might be a serious loser by fluctuations of whom it would have to be exercised ard should at least be taken into serious exchange and that the only safe policy was would be limited and no insuperable consideration. It is a fallacy to suppose to borrow in the local currency. This was difficulty would be experienced with that the bulk of the business is done in sil- urged on the Colonial Office with all the
that
every contract that strength of argument that could be adduced, respect to Swatow is again declared an infected port. is made for future delivery exchange but all to no purpose, and when a second Instead of prohibiting_immigration alto is settled at the time of making the con-han had to be contracted the Colonial Office, gether, a measure which Mr. MAY has shown tract, which is thus placed on a sterling notwithstanding the experience gained in to be ineffective, Dr. CLARK proposes that basis, and the prices of exports also vary connection with the first, insisted upon a passengers should be allowed to land in the with the course of exchange. In the event of repetition of the same mistake, as we have a gold standard being decided upon the con- no doubt it would do to-morrow if a third colony on giving a guarantee that for a cer- tain length of time they would be found at version of the present currency need involve loan had to be raised.
it.
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suppose
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ver.
In almost
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