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THE BENNERTZ CASE. Read letters addressed to the Chamber by Mr. H. Bennertz, dated from steamer Laos, Singapore, 11th June, forwarding copies of a pamphlet setting forth the proceed ings in his claim on the Shanghai Authorities recently settled, stating his intention to lay the onse before the Foreign Office, and asking the Chamber's support in the matter.
Decided that nothing could be done in the matter at present.
THE WORKING OF THE POST office,
A number of letters having been received from members of the Chamber complaining of the late delivery of the French mail which arrived on the 5th inst., a letter was, on the 9th inst., addressed to the Government on the subject strongly protesting against the present postal arrangements and urging the prompt provision of an adequate staff to secure efficient service and prevent repetition of the delays complained
of.
The Chairman said it was unfortunate that the Chamber should have been again compelled to address the Government upon the shortcom- ings of this department, but the public com. plaint was so universal that surely something would be done to provide a more efficient service. QUARANTINE AND MEDICAL INSPECTION,
Read letters from the Government, dated 20th June, transmitting extract from proclamation by the Governor of Kiaochau for the enforce- ment of quarantiue regulations at that port.
28th June, transmitting copy of further let. ter from the Government of. Bengal referring to alteration in quarantine regulations at Chit- tagong.
29th June, informing Chamber that medical inspection of steamers arriving from Canton, Whampoa, and Macao would be discontinued on 3rd July.
7th July, transmitting copy of telegram from H.B.M.'s Consul at Saigon announcing substi- tation of medical inspection for quarantine at that port.
8th July, forwarding copy of letter from French Consul stating that the decree by the Governor-General of Indo-China declaring Hongkong to be an infected port had been can- celled.
It was resolved to write to the Government and suggest, now that the plague had virtually ceased, that clean bills of health should be
granted, and the Singapore Government advised by wire of the fact. ESTABLISHMENT OF A HANDELSHOCHSCHUK
AT LEIPZIG,
THE HONGKONG WEEKLY PRESS AND
Read letter from Dr. Rieloff, German Consul, announcing the establishment at Leipzig of an Academy of Commerce, the first institution of the kind, and enclosing a copy of its prospectus. THE KOWLOON TERRITORIAL EXTENSION CONVENTION.
Certain points in connection with the exten- sion of the territory of this colony, as defined in a Convention signed at Peking on the 9th June, were before the Chamber, and a letter from the Hon. T. H. Whitehead enclosing copy of one to the President of the China Association, on the stipulation that Kowloon City should remain under Chinese jurisdiction was read and considered.
After some discussion, it was resolved first to
am convinced that those figures would make an astonishing total. It is a matter primarily affecting the Banks concerned, who have re- cently been between the devil and the deep sea in this point, but it is really of far wider scope, as it touches all those interested in the commerce of these regions and effects not only their present, but also their future welfare. On the one hand we have the Chinese traders discarding by degrees their ancient methods of making their financial dealings in chopped dollars by weight, in favour of the more conve nient system of interchanging money by means of the Bank notes, in which they have gained complete confidence and which are so much more easily handled. On the other hand we have the expanding business which must assuredly follow the enfranchisement of trade in China, when promises shall have given place to performance, and which natural development of trade is threatened by a scarcity of the most convenient circulating medium. Added to this is the certainty that with a perfect feeling of security in their stability, these notes are sure to be hoarded in large quantities. Even we to suppose that the trade here is not expanding there is no doubt whatever that the use of notes is vastly on the increase, and as the knowledge of the convenience and the sense of security become more widely spread, so the habit of using notes in place of silver will go farther and farther into the interior in ever widening circles. I am informed on good native authority that notes are used now in Wuchow, that port was opened last year. My informant where they would not have been accepted before added that it was only a question of time when present issue of notes in circulation from this they would become current at Nanningfoo. The colony aggregates roughly ten million dollars. Eighteen years ago it was one third of this amount; five years ago it was two thirds and Who is going to say what issue will be required now ten million dollars is quite insufficient. three years hence ? much less what will be re- quired in ten years? The trade has been having been prepared for this change in the caught napping to a certain extent in not
were
currency used, but now that our eyes are opened to the gravity of the situation there should be no loss of time in getting this note issue ques- tion placed upon a sound and lasting festing which will safeguard the future. This is one of those cases of economic change, which is distinctly good in its way, but which requiries to be handled with an open mind and an eye to future developments, so that once taken in hand it will be settled definitely and will allow the commerce of the colony not only to resume but also to continue the even tenor of its way. Staving it off with makeshift expedients will only be postponing the evil day and end in disappointment, because I am convinced that the appreciation and use of Bank notes will increase with great strides in the Empire of China and will do much to facilitate trade generally, unless the system receives disastrous checks such as we have recently experienced. I therefore consider that it is incumbent on the
Committee to give this question most serious attention and consideration, as an ample note issue means a free current of trade, while a restricted one spells confusion and loss, If the Government" will not allow the Banks
apply to the local Government for a copy of concerned a sufficient issue for the increasing the full text of the convention.
LOCAL BANK NOTE ISSUE,
The Chairman said-In referring to the question of the local note issue it is not a matter of taking notice of a passing inconve- nience which is finished with as soon as the extreme pressure is over and a recurrence of which can be easily guarded against. We must take a far more serious view of the position, and I think that the question should be studied by this Chamber from all points, with a view of proposing some scheme to meet the charging requirements of the trade focussed in this colony a change which is undoubtedly pro- gressing. The inconvenience and loss during the past six months, and especially during the last month, caused to the whole trade here, native and foreign alike, by the endeavour of the Banks concerned to keep their note issue within their restricted limits, has been felt by ns all individually in our businesses, and were itpossible to put the actual loss into figures, I
requirements of the trade, then the note issue of the Banks should be supplemented by a Hongkong Government issue sufficient to ensure full accommodation.
Mr. Jackson-The Hongkong and Shanghai Bank has had some correspondence on this subject both with the local Government and with the Secretary of State. Complaints having been made of an excessive note issue over the legalised amount during the early months of the year, we have replied to the effect that this excess of issue was necessitated by circum. stances, and by a great inconvenience and loss to the trade we reduced our issue by the 30th June and brought it within the prescribed limits. We have pointed out to the Govern- ment that these limits are quite inadequate to the requirements of the trade, and have made the proposal that for any excess of limit in an issue of notes we are prepared to lodge silver dollar for dollar in the custody of the Colonial Treasurer, We are in hopes that the Govern- ment will listen favourably to this proposal.
July 23, 1898.
The Vice-Chairman then proposed that the proposal of the Hongkong and Shanghai Bank, as submitted to the Government, viz., that the Bank be empowered to issue notes in excess of their limit on the condition that for any such excess of issue they should lodge dollar for dollar with the Colonial Treasurer, have the cordial and unaninous support of the Chamber.
Mr. H. A. Ritchie seconded.. Carried unanimously.
It was then proposed by Hon. T. H. Whitehead, seconded by Mr. Ñ. A. Siebs, that an extract from the minutes of this meeting on this subject be forwarded to the Government, with a request that the opinion of the Chamber be communicated to the Secretary of State for the Colonies.
Carried unanimously.
THE INDIAN CURRENCY COMMITTEE. The Chairman said that the consideration of
this question was deferred at last meeting owing
to the absence of Mr. Jackson. Would Mr. Jackson give his views on the matter ?
Mr. Jackson said he had received a telegram asking him to give his opinion with regard to the proposals of the Indian Government. His views on the question had undergone no change. He replied by telegram to the following effect :- "I do not approve of the proposal of the In- dian Government. I consider it is impractic able. Pending some international agreement, I would suggest continuing the policy es- tablished in 1893. The low price of bar silver is unfavourable to trade between India and bar silver would aggravate the position.'" China. The Indian Government by depressing
Mr. Whitehead said he had been asked by Sir pointed by the Secretary of State for India and Alfred Dent, a member of the Commission ap-
now sitting, to give his views on the question, · and he had done so in a memorandum he would lay before the Chamber.
The meeting then terminated.
MEMO IN RE INDIAN GOVERNMENT CURRENCY PROPOSALS.
in gold to England. The revenue of the country "The Indian Government is largely indebted is raised in silver, bence India's difficulties of finance between India and England,' which is her principal difficulty. As a way out of her
difies the Indian Government recommends that
rupees
for the purpose of establishing a gold standard in India, ten crores of ourrent silver in India be withdrawn annually, melted and sold, and that Her Majesty's Government should move Parliament to pass an Act giving : the Secretary of State power to borrow up to a maximum of £20,000,000.' If adopted these recommendations would have the following among other results :-
K
1.-Increase, instead of reduce. India's already large gold indebtedness and aggravate seriously the difficulties which already beset the Indian Government in remitting to England the interest on her sterling loans as well as the home charges amount- ing to some £17,000,000 per annum. 2.-Of necessity lead to a further arbitrary contraction of the currency in India, which would assuredly raise the already high rate of interest on loanable money there, render the monetary position intolerable, inade quate to meet natural requirements, and in every probability would conduce sooner or later to a contraction in India's trade. There is nothing more necessary for the development of a country's trade than a free and natural supply of its accustomed currency, The endeavour or attempt to es- tablish a gold standard by means of contrac- tion of the currency in India is condemned on every side by all shades of opinion, and Capital says truly that 'the policy of adding to India's sterling indebtedness in order to cheapen the cost of annual remittances to England is simply robbing Peter to pay Paul.' The proposed shipment in two years of £10,000,000 in gold sovereigns to India (to be stored in the reserve treasuries there) would necessarily raise home-rates of discount and canse stringency in money in London.
"3.—The sale of melted rupees would lower still
further the gold value of silver, not only the metal which the world produces annually but also the silver and rapees