SUPPLEMENT TO THE HONGKONG WEEKLY PRESS AND
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[February 29, 1903,
HES
wages demanded by the Chines into a small colony of foreigne where they are more or less all workin close ring against the foreigners d exploiting him for all they are worthức My së: is borne out by the fact that Mr. Michael want on to say that the adoption of a gold standard in Japan had increased wages in Japan. Then· Mr. Osborne spoke of a certain dollar which bore the King's head-I must confors I have not seen that dollar yet but of the dollars of which he speaks large numbers are floating about in China and would have to be redeemed. I speak subject to cortection, but I believe the Imperial Government have looked upon the issuing of a trade dollar as a certain- source of danger to the Imperial Government. It does not matter whether it has a Britannia with her trident or King Edward on its face - that dollar, if it is brought back unchopped, has- to be redeemed at its full value, and it appears to me that if we induce our Government to establish something like a fixed value for silver, because that would be the effect of giving us a gold standard here, I think it is a very moderate estimate to say that there are at least fifty million dollars which can be returned to this Colony to be redeemed. Sup- pose the dollar is worth 1/7; for every penny over and above that value that we raise the value of our dollar to we have to pay two- hundred or two hundred and fifty thousand pounds sterling and we may possibly thins have to pay for the redemption of trade dollars- as much as one million or one million and a half sterling if the dollar is raised to 2/- that is to say "the equivalent of four or five years income of this Colony. I do not agree with the argument that the trade dollar will simply come in as silver, and I believe I am right in saying that the Singapore Chamber of Commerce propose to get out of the difficulty -at least, so it is stated by one of the Singa- pore papers-by sending their dollars up to Hongkong, where we would take them. There are
it represents the savings of persons of limited man that it is sometimes better to bear the ills means on whom the loss of capital involved we have than fly to others that we know not of. through the depreciation of silver falls with (Applause.) This resolution calls for the case much unmerited severity. Let me illustrate to be submitted to experts. Well, gentlemen, this. A man after saving a thousand dollars the whole conditions of trade between Great in 1901 placed it on fixed deposit with the Bank Britain and China have been in the hands of on the 1st January, 1902, for one year at 4 experts for some time past, and the Treaty that per cent per annum. On the 31st December has been lately signed is the result of it. There he received his principal with interest of was one clanse in that Treaty which met with | 840, to him, no doubt, a satisfactory return on universal approbation. That was that China his little investment. But when he came to should have an equal currency spreading all turn his $1,000 into sterling for transmission over the country. It was one of the few clauses home, what did he find? That he had lost £10. with which everybody thoroughly agreed; yet 784d. of his capital after allowing even for here, gentlemen, before the ink of the signa the interest it had earned in the twelve months! tures to that Treaty has dried we are asked to be (Applause.) I think I have now shown clearly the first to cut ourselves off from China of which, how the savings of the Colony are affected by whatever our political aspect may be, we are com- the never ceasing decline of silver, but I will mercially a part. (Hear, hear.) I could not finish with one more practical illustration from understand from Mr. Osborne's remarks what personal expérience. A few years back I had the standard of value in this Colony was to be. as trustee to realise an estate which on the death He did not seem to hold out much hope that of the testator some twenty years previous, was there would be gold coins; and I was struck worth about £26,000, but which remained here with the way he-unintentionally perhaps invested in silver securities namely stocks and juggled with the word adjustment. It is mortgages. Although the dollar value had a tremendous question. I think that, see- slightly increased, the property when ing that in the British Treaty, which has been realised only produced little over £13,000 carefully gone into in front of us, it is laid for division among the logateos! The down as an axiom that China should have a assertion that things will adjust themselves currency which is equal all over, we should be and that though dollars are worth less we get beginning a very dangerous experiment if, proportionately more of them, have, I think, before giving that a trial, we should start in been conclusively disposed of. It has been and try something else. I have the greatest shown that legitimate trade is hampered, cir- confidence in the opinion of the committee. I cumscribed, and rendered unremunerative by the consider that they are as fully able as any fluctuating silver standard, and that the savings experts to say what we should do in this of the Colony are subject to an annual and business, and much as we may regret such ever increasing shrinkage; and I fail to see uncertainties of life in China as that of the where any compensating advantages are to be currency, we must put up with it and derived. Does anyone profit by the existing do the best we can. With regard to the condition of things? If not, what objection can Indian currency, I think that experiment has there be to make some attempt to obtain relief not yet been fully proved as successful as Mr. from it? For every ill there is a remedy: it Playfair says, aud I think millowners and remains for us to find it. I have for many industrial people in China would hardly years clung to the belief that the ratio endorse the way in which he dismissed the between gold and silver would some day be point. I think our docks and mills here adjusted, and have gone on hoping against might suffer if the Chinese had to be paid hope that the demonetisation of the white metal
on a gold basis; they would ask for the would be stayed or reversed. But that hope best currency going. I cannot follow Mr. has been finally dissipated by recent events; Osborne when he says that the goods from the tide has set in steadily against silver, and Europe and America would be paid for in gold, China and Mexico are now practically the last and goods from Canton and Burma in silver, countries in which it is accepted. The metal He said the adjustment could be done at the can be mined at a lower cost than ever, and the rate of the day. I thought there would be no supplies seem likely to increase rather than to rate of the day, but that it would be a fixed Aiminish. The fall seems indeed to have no thing from the 1st of January till the 31st of I think the issue was rather bottom. Are we to stand idly by and see the December. savings of a lifetime melt into space, leaving us obscured, and I would like this Chamber to to indulge in vain regrets for the fatuity that think over this in their votes, that, if this prompted us to pin our faith on its recovery Chamber comes to a decision which is distinctly and the apathy that induced us to acquiesce in adverse, to silver-however much that may be the dictum that Hongkong must continue denied-it will be to-morrow wired all over the financially wedded to China? (Load applause.) world and give another kick to the already very Mr. GERSHOM STEWART-Mr. Chairman much depreciated dollar. And this being such and gentlemen, We have heard a number of a simple matter, this proposal to tip over the speeches but the speaking has been all on one enormous mass of dollars which we propose to side. We all listened with great pleasure to throw over when this is brought about, it is the very able speech Mr. Osborne made, what-plain that the Chinese, if silver is going to be ever we may think about the point he wishes to make. His cheerful optimism as to the means by which this great change is to be accom- plished certainly struck me with a certain amount of doubt. If the whole thing is so simply done as he advocates it to be, I think the committee of the Chamber of Commerce are well able to discover the means by which it could Mr. E. A. HEWETT-It is not the rule, I be done. Mr. Playfair began by saying that he believe, in a meeting of this sort, for more than was sick of silver. Well, gentlemen, as we go on one member of the committee to speak, but I in life we are sick of a good many things we propose with your permission to transgress that When Mr. Osborne have to put up with. (Applause.) Mr. Wilcox rule on this occasion. drew a harrowing picture about the losses began to make his speech I had it in my mind of landlords on collecting interest on their that it might be udvisable to reply in detail to mortgages. Gentlemen, there must be another some of the points he mentioned, but we have side to that picture. What about the people had three very carefully prepared speeches more who have to pay the interest? 1 suppose they or less read to us, which probably have taken a saved something. However it is a very great good time to prepare, and it would be folly or relief to have an expression of feeling upon a presumption on my part to attempt to reply in question which is by no means a party question. detail to the arguments. Personally, I think It is an honest attempt, I believe, to benefit the arguments put forward by the three For everybody at the expense of nobody in partic-speakers are very largely fallacious. ular, but that is rather a difficult thing to do. instance, Mr. Osborne made one point that the
по can take it for granted that Of course the spirit of enquiry is one to be introduction of a gold standard in this Colony encouraged but it is not a fair statement to say would not increase the cost of wages here. they are acquainted with the China trade or that certain interests must necessarily be oppos- Well, I have had very nearly a quarter of the local conditions affecting Hongkong, or ed to it. It is equally disturbing for a man to a century's experience of the Chinese coolie, that they are therefore qualified to form see his savings diminishing and his chances of and I am prepared to say that from my own reliable judgment on the matter of currency getting an "old age pension" when he goes to experience, and I believe it will be endorsed by in this Colony if it be referred to them. This live in his own country becoming more and more most of you, the question of wages on the main-request may at first sight appear to some remote. But it has been said by a very wise land has really no bearing at all upon the to be a very reasonable and desire
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depreciated, will be less able to purchase our commodities. I think the discussion is extre- mely interesting, but it failed to convince me, and, I hope, others; I think the issues are rather obscured, and I will not give my vote to anything which may tend to farther depreciate silver. (Applause.)
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a number of other questions, but it is late, and we have had a long sitting. But I do believe myself, with all due deference to the gentlemen who have spoken on the subject of a fixed standard here, that they have been draw- ing a red herring across the path. We all sympathise with Mr. Wilcox and his investors and the widows and orphans who have been losing through falling silver. But we have all done that. The question is not what we have each lest or how our private pocket has suf- fered, but the effect this would have upon the trade of the Colony in the event of a I fictitious value being put upon silver. maintain that of all the arguments brought forward there is not one convincing argument to induce me to vote for a gold standard, one brought forward because there is not to show that we are wrong at present.
cannot possibly go believe myself that we gold here until China goes gold, and that alone is the question we have to consider. We have not to consider our private opinions alone -our personal views have nothing to do with it but what is best for the Colony; and I believe it is better to go on as we are than to jump out In that way I of the frying-pan into the fire.
(Applause.) entirely agree with Mr. Stewart.
The CHAIRMAN-I have no doubt that equally with the committee you have all listened with the keenest interest and attention to the discussion which has just taken place. The resolution which is submitted to the meeting asks that reference be made to a com- mission “with a view to ascertaining whether reform of the Colony's currency arrangements is advisable." The commission named in the resolution is a specific one, the Straits Currency Commission. I do not know exactly the com- position of this commission, but I believe it consists of one or two financial experts and several merchants engaged in trade with the Straits. No doubt these gentlemen have thorough knowledge of the Straits trade and all conditions relating to it, but I do not imagine that
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