1:46
THE SUBSIDIARY COINAGE EVIL.
(Daily Pres, August 27tb.) It is rather more than twelve months since the Government issued its notice that all Hongkong subsidiary coinage received in accordance with law by
Government Departments would be melted down and sold, so as to reduce the amount in circula- tion to that required by the necessities of business in the Colony, This policy has had some small effect on the subsidiary coinage evil, for the rate of discount on the Hongkong coins has been dropping, though the fall cannot be regarded as n heavy one, Hongkong 20-cent pieces are now quoted at $6.80 per cent discount as against $7.78 per cent. on Chinese 20-cent pieces, and Hongkong 10-cent pieces are quoted 685 per cent discount against 8:40 per cent for the Chinese coin. This gradual appreciation in value of the Hougkong subsidiary coins is certainly satisfactory, but, until the Government is prepared to shut out the Chinese coin, it can benefit nobody but the Government and perhaps the money changers. The futility of the hope of getting the Chicese authorities to reduce the output of the Canton Mint is evidenced in the translation our Canton correspondent gives to-day of a communica- tion made by the officials of the Finance Department to the Viceroy. It appears that the British Minister in Peking has again been urging on the Wai-wu-pu the necessity for temporarily stopping operations at the Canton Mint, and the report of the financial authorities of Cauton on the subject is absolutely opposed to the proposal. The promise given last year that the output should be reduced by 8,000 taels' worth of subsidiary coins a month is shown to have been broken. There was, they say, a demand for these coins and they met it, despite the promise given to the British Minister; and now, in regard to Sir JOHN JORDAN'S second request, the Canton financial authorities disputeHis Excellency's premises in the matter and stand out against compliance with the request. It is perfectly clear, therefore, that if the subsidiary coinage evil is to be corrected in Hongkong, the Government must go the length of restricting the importation of Chinese coins, and abso- lutely forbidding the circulation of Chinese coins in the Colony. Merely to warn the public that Chinese coins are worth so much less than Hongkong coins is obviously insuff. cient while the subsidiary coinage in circula- tion in the Colony appears to be four-fifths Chinese. Past experience has proved how fatile it would be to recommence minting with a view to providing the Colony with an adequate supply. Of the 40 million dollars worth of these coins put into circu- lation by the Government, enough, presum- ably, remains somewhere to cover the needs of the Colony ten times over. As fast as they were issued they disappeared out of the Colony when the output of the Canton mint was insufficient to meet the demand for subsidiary coinage in Kwangtung province; and if the Hongkong Government were still to go on minting we would not retain the coins in the Colony so long as people were left as free to utter Chinese coins as they are now.
It is clear that we cannot look for much amelioration as a result of any effort on the part of the Canton Mint authorities. Their reply to Sir JOHN JORDAN's request is a naive and instructive comment on the whole question. The controllers of the Mint take no account of the fact that the Hongkong Government has not only ceased to mint any more subsidiary coin, but is retaining and melting
the Mint
[August 31, 1906.
THE HONGKONG WEEKLY FRESS AND | down what is being paid into the Treasury, | between the two peoples. There is only too in order to rehabilitate its subsidiary coin- much reason to fear indeed that the boycott age. What the Canton authorities say is: movement has the Viceroy's entire sym- "Our coins are demanded by the public pathy, and that nothing is likely to be done. and if we restrict the output they will draw either by moral suasion or by force to break supplies from Hongkong." Even now when the tyranny which the guilds exercise in the discount on subsidiary coin is as high restraint of trade. The Chinese Government as it is, the minting at Canton is apparently at the present time appears to be exerting profitable, and the controllers of the Mint itself to suppress various political organisa- to tions which have proved themselves to ba are evidently strongly disinclined
the local governing sacrifice the profits in the general interests embarrassing to of trade. They profess not to see that a authorities, and the Government might well into consideration the dangerous depreciated einage is a tax of trade and take commerce, and they do not even recognise tendency of the trade guilds to enter the What is the that depreciation is the result of over sphere of political action. production. So long as such abysmal difference, 8) far as Japan is concerned, ignorance prevails in regard to elementary between the present situation and that of facts like there and while the controllers of half a century ago when restraint of trade are permitted to disregard a was deemed by Foreign Powers sufficient It would be idle to plead promise when it is given to ja Foreign excuse for war? Minister, it must be confessed there is little that to-day it is not the Government whe are enforcing restrictive measures, but the to be hoped for by the Hongkong Govern-
merchants themselves. The Government ment in the way of co-operation. We can hardly believe, however, that the Board of cannot entirely free itself from responsibility Finance in Peking will be impressed by and blame while it allows these guilds to the views advanced against the adoption of exercise a tyrauny in restraint of trade and Sir JOHN JORDAN's suggestion, but, should gives no sign of its disapprobation of such The neglect of the authorities the Board decide to temporarily stop the proceedings. minting of subsidiary coins at Canton, it to intervene with the object of stopping the is to be hoped that the promise will be boycott can only be viewed as lending it encouragement, and the Japanese Govern- honourably fulfilled.
ment would, it seems to us, be amply justified in making the prolongation of the boycott the subject of a strong diplomatic protest at Peking. We are not specially concerned for the power at which the The weapon the Chinese boycott is aimed. are using has been directed before against the Americans, and unless the Chinese Govern ment is made to feel its responsibility for the losses that ensue, it may at some futurə time be levelled against the trade of other Powers. The Chinese Government has the power to end the boycott, and its neglect to do so can only be regarded, in diplomatic parlance, as a distinctly unfriendly act.
THE BOYCOTT
ex.
THE CHINA 1EA TRADE.
T
(Daily Press, 28th August.) The news from Canton during the past few days plainly shows that no relaxation of the boycott of Japanese goods is yet countenanced by the Cantonese Guilds. Evidently a very close system of espionage is maintained to ensure the strict observance of the orders of the guilds in the matter. When a member of a guild is proved to have dealt in Japanese goods he is apparently mulcted in heavy penalties. It may be accepted as evidence of the power exercised by these guilds that we hear of no open defiance of their orders in the matter, and of extremely few cases of clandestine
(Daily Press, August 29th.) dealings in the banned articles of trade; nor
We have been so accustomed now for many do we hear of offenders who have been mulcted refusing to pay the penalties the years to the annual lamentations in the guild inflicts for " unpatriotic behaviour." Consulur and Customs reports over the No doubt the ostracist which a refusal decline of the China tea trade, that it is not a little refreshing as well as surprising to would entail would prove far more pensive. It is curious to note, however, read of a member of Parliament feeling so that while the guilds are re-affirming their much concern about the reviving popularity intention to ensure a strict enforcement of of China tea in England as to plead with the boycott, the Viceroy of Canton is pleased the Chancellor of the Exchequer for a pre- to accept from the Government of Japan ferential duty in favour of teas grown The fact that not only a monetary contribution but a large within the British Empire.
the returns during the last few years have consignment of goods of Japanese manu- facture towards the relief of the sufferers shown a substantially increasing import of by flood in the riverine districts of the China tea into Great Britain has supplied province of Kwangtung. The continuance Mr. FELL, the Conservative member for } armouth, with a distinct mission in of the boycott for so many months bas undoubtedly been a severe blow to Japanese arliament. If we are not mistaken it was trade and commerce. Its effect on Japanese Mr. FELL who unsuccessfully endeavoured shipping has beeu especially marked, and last year to induce the Chancellor of the most of the Japanese steamebip companies Exchequer to make this discrimination, but engaged in the China coast and river trade the Chancellor of the day was not inclined to admit the likelihood of China tea compet- have been obliged to go in for drastic econo- mios. How long is this state of affairs to being effectively with Indian tea. Mr. FaLL, For the Govern- however, attended the House of Commons permitted to continue? ment of Japan to make strong representations last month primed with statistics in support to Peking on the subject would doubtless of his plea. The import of China tea which serve only to make matters worse. She has was 5,900,000 lbs in 1905, he told the wisely been adopting a conciliatory polioy, House, rose in 1906 to 18,500,000 Ibs and but if there is any indication of improve in 1907 to 19,000,000, These figures, the ment in the situation it cannot be very hon. member said, showed that the consump- substantial. There is no present intention tion of China tea was increasing rapidly in on the part of the the guilds to allow the England and it might, he urged, become boycott to "fizzle out," and so far as the dangerous competition with the tea of India attitude of the officials goes, no consuming and Ceylon, as the public taste in such desire has been manifested to end the matters could not be predicted." Let the tension and restore friendly trade relations Chancellor of the Exchequer shouldğihini
!