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Jung 2, 1906.j
SUBSIDIARY COINAGE ATTM
HONGKONG.
The following correspondedce was sout to us for publication
The "Star" Ferry Company, Limited.
Hongkong, 30th April. To the Hon. Mr. E. A. Hewett, Chairman, Hongkong Chamber of Commerce.;;.
818,I have the honour to draw the Chum- ber's attention to the recent fall in the value of British subsidiary coins by which this company and others whose business lies on a cash basis are losing heavily
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2. And apart from loss to individuals the malter is, I submit, of sufficient importance to the Colony at large to warrant the considera tion of your committee,
3. For many years and until recently, Chinese subsidiary; silver coins were at a discount of about 2 per cent.; British subsidiary silver coins maintained à parity of value with the dollar; whilst British copper coins as measured in Chinese silver coins were at a premium varying from 2 to 4 per cent. British subsidiary silver colus are now quoted about 5 per cent. discount and copper 9 per cent.
The former disparity between British and Chinese coins was, I understand, due to a difference in fineness.
4. Recently the Canton silver coin has shown a tendency to further depreciate and, what is of more importation to liongkong, bas apparently dragged the British poin with it, the reason assigned being that the debtor, finding he can discharge his liabilities in the baser coinage, has no further use for the higher.
5. Following immediately upon the minting in Canton of copper coins, the British que cent piece sank to the level of its Chinese counterpart, and, it is assumed, for the same reason as led to the fall of silver coins.
6. So far the Canton officials have apparently been satisfied with a moderate difference in fineness between their coius and the British. If their object be to drive the latter out of ciren. lation in their country, their action is at least intelligible, and, provided competition between the- respective coins remains as at present, doubtless matters will right themselges at no great low to anyone but the Hongkong
Government.
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7. But if rapacity be the mainspring of their policy the question becomes serious; for unless nipped in the bud this debasing process will grow ▼ to large and ruinous proportions, and to the prejudice of Hongkong's trade; sich aucces. sive oficial will seize the golden opportunity until hopeless confusion and loss bring matters to a orinis:...
8. To make matters worse, a Chinese dollar note has recently appeared in the Colony and is actually in circulation at Canton.
CHINA OVERLAND TRADE REPORT.
currency dollar, its exchangy value is naturally- liable to factaste socording to supply and demand.
2. The committee of this Chamber:are agreed that the question of the low in the- purchasing power of British subsidiary ooie, however it may have been caused, is one which deserves serious consid-ratiou.
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A SAN-FRANCISCO-ESCAPE.-
STORY OF BEMARKABLE GOOD FORTUNE,
her own property at Sen Francisco telegraphed A Hongkong taipan whose mother resides on at once for news, but-like many others, aot no 3. Without necessarily accepting either the reply at the time. His very natural anxiety :: statement in this paragraph as to the notual
has now been set at rest, and turned-ta some- discount at which the British ein is nothing like jor, by the receipt of a letter detailing ported to stand, or that which gives the
the extraordinary good luck of his relativos. 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 Province of China, and while the Colony at the moment undoubtedly benefited by the then existing state of affairs, as it was not to be expected that this outside source of revenus would continue indefinitely, and a chance, brought about by among other causes an over- production of Chinese subsidiary coin, should not be looked upon as a mitter calling for legislation on the part of the Government.
and all buildings intervening are levelled to the Ta house is jast five miles from the ferry, ground. The block immediately adjao it, on s the ferry side, was dynamited just in time to stop the fire reaching the house, from the windows of which smoking ruins are visible all around. The lady, who has reached a rip: old age, was a little shaken by the terrible ox- for her own god fortune has upheld her spirits. periences of her neighbours; but gratitude Her family had repeatedly advised her to invest her capital in real estate, and regarded her prejudico in favour of the bank and a safe four
per coat as foolish. With financial ruin on The second pirt under this head seems to
every band, the venerable lady naturally claims imply a change in the difference of fiueness and income remain unaltered. To complete the credit for her superior prescienos, as her ospital between the Hongkong and Canton subsidiry tale of good luck, her son-in-law, residing with coin of the present as compared with that of the her, had recently embarked upon a building past, but of this the committee have no evidence. enterprise, which, despite his impatience and 4/5. It must be admitted that the over-produceballar at the contractors, had advanced po tion of Chinese subsidiary coin has resulted in
further than the foundations. He also enjoys its depreciation and his also reduced the dem ud for Hongkong coin, bat it is an error to suppose family were able to lm of asdatance to many of
a feeling of considerable satisfaction. Th that a debtor can discharge his liabilities in this
theifles‹ fortuuste neighbours subsidiary coin, though for sake of o «uvenienve no doubt many small debts are so settl d.
No one iu the Colony need accept Chin se subsidiary coin at all, while the legal limit fr Hongkong subsidiary silver coin is 82.00 and for copper $1.00. If payments are accepted in Chinese cou, or Hongkong coin in excess of the legal limit, this is entirely a persósal met ee betwuau debtor and creditor and is presumably due to caus s not to be controlled by the Ordin- ance, being in rely an ordinary busines« qustion for consideration when fixing the pice of commodities.
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6/7 The developments for sh«lowed in pra graph 7-are poblematical. The committee of the Chamber while viewing the excessive production of silver and copper coins by the Chinese minis as calcaled 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 oue 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 Bank $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 85.00 notes are not so stamped.
THE PLAGUE,
28th. 20 p'ague cises were reported; sighteen:: During the 45 hoars euding at noon on May.
of them wars fatal.
The return for this week ending May 26th: tion of three Ludian cases, all were Chiness. was 116 cases and 116 deaths · With the excep
have definitely proved that rat's fleas, are the The Indian Plague Commission are said to "normál ́tol cles of infection iu' animāls, and probably in mai. This has been arrived at by showing that anima's protected by fine wire ings, while unguarded contacts contract the die- gauz + remain immune in plague-infected build. ease in large numbers. Although Ogata sa far back as 1897 showed that the titnrated floss of. rats were infective, the theory of insect trans-- mission has been generally "pooh-poohed," and mach of the credit of bringing the matter again to the fore is undoubtedly due to Capt. Glen Liston, I.M.S.
THE COMMISSION,
RESIGNATION OF THE CHAIRMAN.
Wo learn that the Hon. Mr. H. E. Pollock mission appointed by the Government to make has resigned the chairmanship of the Com- inquiries into the operation of the Building and 8uitary Ordinances. The reason assigned for the withdrawal is that he cannot devote (be necessary time to the duties of the position, as the sittings of the commission, we
9. If your Committee consider there be cause for alarm, doubtless they will move Government to legislate in the matter, and now that the Government's profit on subsidiary
9. After carefully considering the question. coins is endangered (for if there be no demand the committee of the Chamber are of opinion there will be no further coinage, and conse-
that the only course likely to influenes remedial quently, no further profit) perhaps their former
measures is to communicate with the Chambers reason for a policy of non-interference will of Commeros at Shanghai and Tentsia with ■ no longer weigh and there may yet be time to view to sending another joint M-morial to the frustrate the evil in its incipient stage.
Diplomatic Body at Peking urging that the 10. As regards a remedy I venture to perial Government should agaiu b› onlled suggest that British coins be rehabilitated and upon to carry out its treaty obligations, and, by protected by making them legal tender up { placing all the mints ander oue control produce one. meeting for inquiry has so far been held. 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.
to any amount, to the exclusion of all other coins, and by Government pledging itself to redeem all its coins at par.
I have the honour to be, Sir,
Your Obedient Servant, (8gd) EDWARD OSBORNE,
Secretary.
Hongkong General Chamber of Commerce.
Hongkong, 28th May, 1906 SIE have to acknowledge receipt of your letter of 30th ultimo, in which you direct attention to the loin sustained by your Com- pany, and others through, what you term, the fall in the valús of British subsidiary coin, and to inform you that your luftor has r-osived the careful consideration of the committee of the Chamber of Cụmmeror,
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In the first place owing to the fact that legal tander of subsidiary cofa“ is' limited and that intrinsically it is not worth so much as the
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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 sil much coins at par, the committee of this Cham- ber areal ogether unable to endorse, such a proposal, nor ein they as matters now stand see their way to make any representation to the Hongkong Government with regard to legisla- tion.
I have the honour to be,
Sir,
Your Obedient Servant, (8gd.) ELBERT A. HEWETF,
Chairm n.
Hon. Mr. Edward Osborne,
Secretary, “Star” Ferry Company, Limited. ·
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are likely to be protracted over derstand,
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The second wis to have taken place to-morrow, but has been cancelled as a result of this
OccurrencA,
After the foregoing was written, a_G›vern- ment Gazette Extraordinary appeared, with so * Amended Commission" by H. 2. the Gorer- nor. in which Mr. E. A. Howett is appointed chairman, and the quorum reduced from four members to thre
FOOD RIOTS IN YINGSHAN,
A serious dear food rising has taken place in Yingshan, Kiangui province." The people are taking refuge in the cities.
The British gunboat :: Snipe" was to from Nanchang to the scene of the disturban on June Fist, while the Governor sending.troops
The mixtionaries' were, not involved: in trouble