February 23, 1903:]
CHINA OVERLAND TRADE REPORT.
has even been suggested that we should have to man of honest intentions could live in moderate the output of silver bas roughly trebled and the make good the loss on Mexican dollars because confort and invest his savings without anxiety, price is little more than one-third of what they are legal tender in the Colony. What Then as to the greatest advantage of all- was then. Arguing, therefore, loss, I ask? Have we not already lost? Has plentiful money. With a stable carrency figures, and with the knowledge of not our dollar, the price of our labour, the sweat money would be invested her industries increasing production of silver as s of our brow, been already lost? Eurely no one would be stimulated by reason of abundant aloue, what will be the product of allver seriously proposes to redeem the dollar at a capital, and trade flourish in consequence, sixteen, and twenty-five years hence fixed rate; it has never yet possessed a value whilst the value of local investments would will be the price of silver then? - What beyond its own weight of silver, so why attach raise to probably a 5 per cent. basis. The reduction in value will the accumulated say te it an artificial value for the purpose of Colony's expenditure is now largely in gold. of individuals show What further loss to thê redemption. Again then I ask, what loss? Our its income in silver-a most unsound state of income of the Government, and what burdens loss is already made; what we want is affairs, which with a gold currency would will have to be laid on th› ratepayers? The to prevent it becoming greater. (Applause.) cense. As to the most important point of all, expenditure of the Colony is in gold and yet The third objection is that our silver viz., the scheme of conversion, opinions must its dues are collected in silver. Wo have tokens would be counterfeited in China; necessarily differ, and I will not presume to borrowed in gold and lost terribly on the well on this point 1 think we need have burden you with my views or dilate upon transaction. Looking at it, therefore, from little fear, because the same protection that alternative measures, because that is a subject self-government point of view it will simply be guards the shilling and sixpence at home could, for controversy and experts, but in order to disastrous to go on as we are doing. The I take it, be extended to guard them in Hong-forestall any charge of incompleteness in my Secretary of State for the Colonies has recog kong. Having dealt with all the objections of remarks I may perhaps be pardoned for saying nised the hopelessness of a silver ourrency, by public nature that occur to me, I come to its a word in favour of sterling, the good old ordering the passing of an ordinance by which advantages, and these are indeed truly greit. cumbrous pounds, shillings, and pence of our all Government officials are to be paid in gold. First and foremost comes the personal element, native land. The mother country's coinage, Not only that; but most banks, merchants, Gentlemen, is there a man in the Colony who can it seems to me, should be good enough for us, and insurance offices are gradually being forced truthfully say that he benefits by a fall in silver? and as the greater part of the worlds to recoguise the same thing and in one form (Applause.) Yes, perbaps there is just one, trade is carried on under the pounds, shillings, or another are putting. their employees more or viz., the man whose income is in gold and who and pence system I do not think Houg-less on a gold basis. All this points, gentlemen, spends it all in silver to the utmost limit, saving kong's infinitesimal affairs will disturb the to the tendency of the times and shows how nothing, investing nothing. That man benefits equilibrium. A change to sterling could everyone distrusts silver, and yet there are some because silver prices for Homestic expenditure be effected by Government importing gold, who are afraid to take the forward step and do not immediately rise in sympathy with the silver, and copper coins similar to those in use sever our connection with an unstable com- fall. Gentlemen, is there a man poss:ssed of at home and from a given date making sterling modity; for silver is nothing more or less than anything at all who does not bitterly deplore legal tender in the Colony; at the same time a commodity and can no longer be dignified by that he ever kept his savings here? Does demonetising both the British and Mexican the name of currency. All these matters when he not regret day and night that every dollar dollar which would then be left to find a sale calmly considered are really appalling to saved was not forthwith cabled to London ? for themselves on the market at the current contemplate and fully justify us in asking Not one man in this Colony can truthfully price of bullion. And, if there be a danger of for your expression of opinion on the sub- say that he has benefited by keeping his capital the sovereigns becoming absorbed into China I ject and that such opinion should be com- or investments in silver (applause); and if we submit that this could be prevented by confin. municated to the Home Government; The regret the past to-day may we not have cause ing the currency to silver and copper tokens and fixing of the rupee encountered much opposition to regret the present when it in turn becomes banknotes backed by an effective gold reserve and at firat the evils only were apparent and the past? What is there to prevent the dollar kept in London. In process of time one's
the good had not begun to show; but now that going to 1/3, 1/, or even lower? Absolutely dollars would be bought up for their valueļas some years have elapsed, India is on a sound nothing but the cost of production and the metal, and the notes, shillings and pence take basis, the benefits are undoubted and very few laws of supply and demand. We are told their places, though in the meantime, no people doubt the wisdom of the operation. things adjust themselves, that in sympathy doubt, there would have to exist a sort of double Gentlemen, it would be the same thing here; with the falling dollar up go stocks, property, currency. The storekeepers, the doctors, the once we could persuade our. Government to salaries, dividends, and it is only a question of lawyers would charge sterling rates, and receive secure fixity of exchange, the results would time that matters right themselves. A poor payment either in sterling or in dollars at the very soon show that the policy was justified consolation indeed for us to know that in rate of the day. The ricksha-coolie would con- and you would then be certain of being able to years to come our descendants will reap two tinue to accept Chinese money, and failing that attract home capital. All that we are asking dollars where we have sown one. A fine would receive his penny fare, and either uy for first now is an enquiry; there is no necessity incentive to labour and thrift, indeed, to know bis rice with penny-pieces or change them into to formulate any fixed detailed suggestion on that in process of time everything will pan out Chinese cash to make his purchases as he does the subject. And in reference to this I would all right, whilst we in the meantime perish in the to-day. The banks would convert their clients' read you the following which the Singapore process. (Applause.) And, indeed, this gospel accounts into sterling at the current rate for Chamber of Commerce wrote to the Govern- of adjustment, like the gospel of cheap silver silver bullion, whilst the Icoal companies would ment there:-"It seems to the committee of stimulating exports, is a fallacy. Salaries, change the face value of their scrip into sterling the Chamber that if Government decides to investments, rates of interest on mortgage have at whatever rate the shareholders fix. Before introduce fixity of exchange it will not be to the not doubled since the dollar was twice its concluding these remarks there is one point I advantage of the Colony that the suggested present value. Cheap silver has not stimulated will ask your permission to emphasise, and it details of any scheme should be known to the the exports of China, as witness the China is this, that the resolution does not commit public beforehand or even be supposed to be export trade to-day. That cheap silver stimu- you in any way to an approval of a gold our. what will be acted upon by Government. If lates exports is true only in that it does so rency; it merely asks for enquiry, and if after a conversion is to be brought about, it will pro- temporarily, but to maintain that it does 80 full and independent enquiry it is found that a bably be much facilitated and cheapened to permanently is tantamount to saying that a gold standard is unsuitable to our circumstances the Colony-by the public being kept in ignor- eap medium of barter creates trade; and if then nothing more can be said upon the subject, ance of the arrangements and provisions by that be so we have but to substitute African except that we must wait in anxious hope for which Government would have to precede the act of conversion. For this reason it will cowries for silver and gold and the trade of the the day when China shall awaken to our resone. world would be immensely greater, The whole In the meantime let us endeavour to help our perhaps be well that the committee should not preaching is false, the doctrine rotten to the selves, especially as by so doing we may possibly in this communication put forward suggestions If for no other reason, core. But how different would things have influence China to adopt the one true standard of a detailed nature.' been had our savings and our capital been in of value under which the greatest natious of gentlemen, it was necessary to call this meeting, gold, and is it not suicidal to lag behind the the earth have prospered and progressed. as the chairman of the committee inferred that remainder of the world and in the end (Applause.) I beg to move the resolution I the Chamber endorsed the views, or rather timid pay the penalty of sloth. To wait till have read.
absence of views of the committee-and in this the Straits and China have thrown over
the worthy chairman was distinctly wrong, as silver is to await for certain & further
I think the votes to be given this afternoon. loss; we want to change our dollars before
will prove._(Applause), { they go lover, and we want without wasting further time to start afresh on our own account. Almost every one, I suppose, cherishes a hope of eventually returning home to end the few remaining years of life this climate leaves us. Almost every man who has left his country has done so in the hope of bettering himself; other wise why come to an unhealthy climate and shorten one's life by 10 to 20 years. Thanks to this question of silver, most men in the Colony have had these hopes and aspirations curtailed if not crushed out of existence; whilst with many, owing to the high cost of living, existence is a daily struggle against adverse circumstances, saving becomes an impossibility, thrift and economy are strangled at every turn. But with a gold standard prices would remain stationary, expenses could be measured, and in a short time the level would be found where every
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Mr. J. R. MICHAEL” said➡ Mr. Chairman. and gentlemen, I beg to support the motion of Mr. Osborne. The report of the meeting of the committee of the Chamber of Commeros held in December last, which very wisely printed and circulated, has no doubt been care fully read and considered by every member of this Chamber. It has also proved of much use because it has given us a basis for the discussion of one of the gravest questions which the busines men of this Colony, have had to consider. In view of this I may most emphatically —and I am sure the majorit agree with me that perpetual stigma on- community i the
Mr. PLAYFAIR said-We are all heartily sick of silver; it is an utterly unreliable currency and we all see our little hard-earned savings melting away into nothing like a lump of sugar in a cup of tea. This instability is neither good for us individually or for. Hongkong sa centre entrepôt. As a local paper remarked the other day" Stability is the desideratum of Hongkong's prosperity." It is from that point, gentlemen, that we should approach the matter notwithstanding the vague warnings of some who advance the assertion, but without any convincing arguments on the subject, that the trade will leave Hongkong to go to Canton, That is a bare assertion, incapable of proof and to that I would simply reply,-“ Why has not the trade centred in Canton long ago?" Be- cause, gentlemen, Hongkong is a free port under free and honest institutions and not in our day or in the days of our children's child chairman of the ren is China likely to be free enough to attract | namely, an 'away our trade. In the last twenty-five years ' this vital question.
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