October 11, 1909.1
undertake them any longer, and it cannot be said that we have not done our utmost in the interest of British interests in the Far East. Meanwhile the question of military contribution is to be fully investigated. The total postal ex- penditure shows a decrease of $4,500.
1
THE OBSERVATORY.
+
|
CHINA CVERLAND TRADE REPORT.
нее
the year, and not, as in the last two years, to cover the loss by withdrawal and demonetization. In 1908 a sum of $36,000 was estimated for this purpose, and the actual expenditure was $164,674, which included notes in hand. In 1909 the same estimate of THE HARBOUR AND EXCISE DEPARTMENTS. $36,000 and the actual expenditure is estimated
At the Harbour Office the replacement of a at $134,000, which gives a total of nearly three| first by a fifth grade telegraph clerk effects a lakhs in three years. For my own part, I can saving of $1,140, and the vote for coal for no object in withdrawing our currency launches has been reduced by $2,100. The from circulation so long as its depreciation below large sum for fog signalling at Gap Rock last par value is obviously, due not to au excess in the year is non-recurrent, and is therefore decreased quantity, but to the existence of a par valve by $2,100. The net saving in the whole depart-coinage which is not legal tender and which ment amounts to about $2,500, and a further circulates at a discount and influences the value saving of $2,550 appears under special expenses of our own, making it run to a discount. of a buoy for Cust Rocks. The only consider (Applause.) If, then, our coinage is shown to be able change in this department is that in conse- redundant it will, in my view, be time enough quence of the new liquor duties, the collection of
to take steps to withdraw a portion. At present which will devolve upon the Superintendent it seems to me it is unnecessary to cover this loss of Imports and Exports. I have decided that this while the whole question remains as yet office shall until further notice be detached from undecided and our financial position is difficult. the ex officio duties of the Harbour The matter is, however, one which affects the Master. The Superintendent of Imports and trade and commerce of the Colony, and I am Exports remains directly responsible to me for referring the question to the Chamber of the collection of the liquor duties. The cost of Commerce and the China Association, which his staff, and all incidental expenses, will be met are representative bodies entitled to speak from a lump sum of $60,000, for which provision for those interests, and as a sum has been has been made, and when the system has gra- provided in the Estimates in excess of that dually evolved itself during the first experimental provided during the last two years, when the year we shall be able in the Budget of 1911 to policy of demonetization was in operation, distribute this vote, and insert in their proper either policy can be followed so far as the places the actual staff which experience will
Estimates are concerned. The actual loss have shown to be necessary, and the various incurred by Government by payment of dis- other charges involved. I may observe that count on subsidiary coins is calculated at this cost will not be entirely included in the $26,777. I cannot leave this question without Harbour Office; a part will be incurred by a reference to the larger aspect of it. The au extra staff in the Government Analyst's attitude of the Government has been de department, and part may appear under scribed as one of apathy and devoid of a de- Police.
finite policy This is incorrect. There are two policies open to us. Une is to adopt some vigorous method of restriction of Chinese subsidiary coinage, the other is to await the result of the pressure now being brought to bear upon the Chinese Government to re- organise their coinage and more especially to control the issue of their mints. The first policy, that of vigorous repression of Chinese coinage, which is to await the result of the measures undertaken by Peking, would, no doubt, result in the rehabilitation of our small currency. It would also probably result in a great influx of that currency from China, and compel us to large measures of demonetisation which at the present moment our finances can ill afford. It is urged by those who oppose that policy that it would interfere with the minor operations of trade. especially among the Chinese; that to enforce it would require measures which would be highly unpopular that it would be resented in Canton. They say that the companies who suffer are few and that the remedy is in their own hands, namely, either refuse non-legal tender or to put up their fares or prices. Those, on the other hand, who advocate the second line of policy, urge that although many years have passed without anything effective having been done by the Chinese Government, the last year or two has seen a movement the result of which we ought to wait before taking a plunge in the dark. During last year we were awaiting the return of His Excellency Tang Shao Yi, who had been sent to Europe and America, it is understood, largely to study this question. Since his return one important edict has been issued which a Home paper describes as a foundation stone of the Mackay Treaty. It enacts that all coins now current of whatever valuo shall be minted of one standard of fineness and one authorised pattern. Meanwhile the necessity for increasing her im- port duties is daily becoming more imperative, and Great Britain and other countries have de- clined to agree until the questions of likin and coinage are simultaneously dealt with. It is in these circumstances, I think, legitimate to hope that the decree I have referred to is the beginning of a real attempt to deal with this matter. I made an attempt within a few days of my arrival in this Colony to ascertain the views of the merchants and bankers and finan- eiers of Hongkong upon this vexed question, and in August, 1907. I appointed a large and influential Committee to investigate and report upon it. The findings of that committee were by no means unanimous, and the majority were divided amongst themselves on several
Under Observatory there is little change except that all increase has been allowed for meteorological telegrams, which will add to its efficiency. The Director concurred with the Retrenchment Committee that when the post of Assistant Meteorologist falls vacant it need not be filled. In running through these heads of Estimates it has been my object not merely to ex- plain changes in figures, but to inform you and through you, the community at large, of all matters of interest and importance which have occurred during the past year or are in anti- cipation in the approaching year. It is unavoid- able that this should greatly prolong my speech on this occasion, but for my own part I welcome this annual opportunity of explaining matters of policy and of progress, and I am sure I shall not exhaust your patience in doing
50.
It is the one occasion upon which the Government, which is entrusted with the wel- fare of the community, has an opportunity of giving an account of its stewardship, and of enlisting the interest of its inhabitants in the Colony in the various matters not directly connected with legislation, and which therefore do not ordinarily come before this Council. In regard, then, to the Observatory, we have not yet heard of the establishment of the wireless station which the Government of the Philip pines undertook with such willing co-operation to erect in the Islands of the Balingtang Channel, but we may be sure it will not be forgotten. So soon as the present negotiations between China and Japan are satisfactorily concluded I have hopes that we may witness the erection of a station at Pratas-(applause) which will be of invaluable assistance to our typhoon warnings.
Under Miscellaneous Services, the sub- head of the same name has been reduced by $15,000. This cannot be regarded as a retrenchment, for the expenditure hitherto devoted to this head must in future appear separately, as it should do. As last year, the full vote of $20,000 was exceeded by $37,332; loss on exchange and the purchase of tho Laichikok quarantine station was debited to it. The economy in the method of printing in the Gazette saves $4,000, while a small increase has been made for printing miscellaneous papers in order to co-ordinato and improve the records.
THE SUBSIDIARY COINAGE QUESTION.
Under Redemption of Subsidiary Coins there is an increase of $4,000. This is calculated to cover the loss on discount of subsidiary coin received as legal tender during
f
315
Ho
issues. By a narrow majority they recom- mended the first of the two policies, namely, one of restriction of Chinese coins. But, I think, though I am not certain, that the Chairman agrees with me that it would be better to defer putting that majority recommendation into operation at present. The Chamber of Commerce and the China Associa- tion, however, advised against this policy. In the circumstances I have adjudged it most advisable up to the present to adopt the course advised by those two bodies, and I wish to impress upon you in doing so that we aro adopting a definite policy which does not denote either apathy or indifference. (Ap- plause). During the coming year we shall judge whether events justify us in continuing this policy or in adopting some alternative. Tho matter is too large to deal with on this occasion in detail, and it would be better to discuss it separately should any unofficial member desire to raise the issue. I cannot, however, leave it without a passing reference to a speech delivered by a prominent and greatly respected member of this community who formerly occupied à sent at this Council. Speaking as the Chair- man, of the Hongkong Canton and Macao Steam- boat Company, he stated that a loss of 28,389 had been incurred by the company on sub- sidiary coin during the half-year. I disregard the charges of lack of wisdom, courage or foresight and the accusation of indifference, apathy and supineness which the speaker stated to be amaz- ing, even for this Government, and which his audience applanded, and I come to the facts. I have here an extract from a letter addressed to me unsolicited from the manager of Messrs. Butterfield and Swire, and he says that he considers it his duty to write in explanation of the statements to which I have alluded, which he describes as irrelevant and fallacions. proceeds to explain that as Messrs. Butterfield and Swire are working in agreement with the Hong- kong, Canton and Macao Steamboat Company he is qualified to speak. He informs me that ninety to ninety-five per cent. of the earnings on the Canton line are collected on board in subsidiary coin and must always be collected on board, Nothing that the Hongkong Government can do would change this custom of paying on board or cause passengers to pay in anything but subsidiary coin. At present they pay in Hongkong subsidiary coin and Canton subsidi- ary coin, as both are at about the same discount. If Hongkong barred Canton subsidiary coin from import into and circulation in Hongkong, it would not make any difference to the Chinese passengers, who would only then pay in Canton subsidiary coinage as the cheaper money, and if the steamers attempted to collect Hongkong subsidiary coinage, assuming that by prevention of Canton subsidiary coinage our subsidiary coinage could be raised to par, the passengers would travel by other steamers not imposing this condition. It follows that the Steamboat Company has to accept that which is offered in payment of passage money, and the subsidiary coinage would still have to be sold at market rates. Again, assuming that Canton subsidiary coinage is barred out of Hongkong and that Hongkong subsidiary coinage is by this action raised to par, it is not unreasonable to suppose that with the Hongkong market closed against it Canton subsidiary coiuage might even go to a greater discount than at present, and therefore the Steamboat Company would be worse off than they are now, for it is certain that under these conditions most of the subsidiary coinage collected on board would be Canton subsidiary coinage, which they would have to sell at market price in Canton. The Steamboat Com pany could not by any means they possess force passengers to pay Hongkong subsidiary · coinage. It is, moreover, a fact that the Steamboat Company with ourselves did raise the rate of passage money to compensate for the discount on the subsidiary coinage we are forced to receive, and the Company's ac- counts speak for themselves." I will not quote further from Mr. Law's interesting letter, which is devoted to arguments against the policy of restricting Canton subsidiary coinage, and to justifying the present policy of the Government. It is only on this one. occasion during the year that the Govern ment has an opportunity of justifying or at least explaining its action. Charges of