422
November 13, 1909.
THE HONGKONG WEEKLY PRESS AND dissociated with that of the Chinese Empire in his Budget speech. I replied on that occasion and I believe if any attempt of that kind that it did not seem as though the scheme afford- was made it would inflict a very serious blowed any grounds for belief that the introduction on the trade of the Colony. We must con- of the new coinage would oust the Chinese coin.. tinue our trade with the southern part He did not tell us on that occasion whether he of China, and merchants doing that must anticipated that it would oust it or thought that deal with Chinese on terms of equal footing as it would not, or whether lie would be content, far as their coinage is concerned. If they find that the Chinese coin- should circulate in the that through legislation in the Colony trade is Colony provided that the new commige circulated checked, they will remove their business to the at par. The scheme would admittedly involve treaty ports. The trade will continue, but the repudiation of the Hongkong currency which interests of Hongkong will suffer. It appears remained in circulation, for. I think there is. to me that the only thing to do now is for the little doubt that the existing currency would Government to continue the policy, which I still remain in circulation as long as the understand it has followed for some time, of Chinese coinage; of course, circulating like endeavouring in
I do not think every possible way to it at a large discount.
in reform
China, that any British Government in any British encourage
I which, think, is within
a measurable Colony would agree to scheme involv- . distance. I
If I am, may
wrong there.
ing repudiation of existing coinage being then, it will be open for the Government of this attempted, and unless a very considerable period Colony to reconsider the circumstances. As a for the redemption of the coin in circulation matter of fact, I think that it would in the were agreed upon I could not support it myself. circumstances be an enormous mistake and deal | On this crucial point the hon. member in the If he a serious blow at the material prosperity of the brief outline he gave was silent. Colony were the Government to attempt this had in his mind that the period should action. I will not take up the time of the be so short a one as to prevent the influx of Council further. As I said, I have only just stocks from Canton, that would involve an act heard the remarks made by the mover of the of repudiation so large that I do not think any resolution. It is impossible for me and I do of us could consider it just now. If, on the not think it is at all necessary to enlarge on other hand, he contemplated a considerable anything he has said. I merely wish to sup- period during which the holders of existing. port him in the main principles of his resolu. stocks should be able to redeem the coin they tion.
currency
be
!
submit that it is less faint than any hitherto, held out. We shall doubtless be told that the Central Government is not strong enough to force a uniform currency upon the Provinces, even if it so desires But it is not reasonable to be asked to believe one moment that the Central Government is powerless to do this, and to be told at the same moment that it is powerful enough to eradicate the opium habit in a few years throughout the length and breadth of the land. If that is possible. and tho accredited authorities on Chinese affairs proclaim the fact, it must surely also be possible to perform the far simpler task of controlling a few Provincial Mints. All that is required is an adequate motive and this may conceivably be supplied as suggested. Thus there seems more ever before, and, chance of reform than therefore, more than ever now should we exercise patience and wait and see what is to come. In the meantime it is in cumbent on this Government to continue to work towards the rehabilitation of the subsi- diary coinage in use by exerting its influence to combat the evils of over-production by the Canton Mint. More than that I do not ad- vocate at the moment. It appears to be still doubtful whether the anticipated uniform cur- rency throughout China will be the tael or the dollar. Whichever it is, we should, if possible, adapt our currency to it, and, pending the Central Government's eventual
ad-say, a period of some six months-the choice, I do not think it would be wise of us
HON. MR. OSBORNE-I thought, sir, that liability which this Colony would incur would to launch out independently. If, however,
undoubtedly be a very large one and one We were here to discuss questions concern wholly unknown. I concur, too, with what the within a reasonable period, it should become ing Hongkong. but we seem to be wandering apparent that, after all, the hope that
into away be fulfilled, I have dwelt on is not to
Chinese currency affairs that proposer of the resolution said regarding the inadvisability of establishing any new form of have no bearing проц the point at then we shall have to face the risks of inde
issue;
will
coinage at the present moment until we know I SO
endeavour to focus pendent action, and then a comprehensive scheme
what the coinage of China is likely to be. the debate back
the Colony's needs. of local currency reform-dealing with our
The honourable member who has moved this Finally, and I think this is the most important copper as well as with our silver coins-
new coinage and will receive my active support.
resolution declares that repudiation of British point of all, the issue of a But while
the repudiation of the old would, I fear, these things
the knees of the coins is indefensible, and no doubt there are
strike a very serious and grave blow at the that many who will be inclined to agree with him; financial stability and integrity of this Colony gods" I have no particular desire
indeed, it was only in regard to this aspect in the eyes of China. (Applause.) In these this Government should bind itself in any way
of the question, as I stated a fortnight circumstances I am prepared to give the as- other than by the declaratiou I have asked for, and simply in order that there may be subject taken to my proposals. I will not arguetion, to use his own words,
that I anticipated any exception being
surance asked for by the proposer of the resolu- the Government matter before the Council to speak to, I move
the point; to do SO would be of little pro forma the resolution as it stands.
advantage, because it is unlikely_that_unan- imity would ever be reached. But I will meet his objection with a development of the original scheme, by which repudiation can be
are on
The Hon. Mr. OSBORNE-The hon. member has wandered very far from the point-
HIS EXCELLENCY-The resolution has not
been seconded.
Hon. Mr. HEWETT-Your Excellency, I informed the hou. member who represents the Justices of the Peace that I would be very glad
to second his resolution. When I came into this
my
room I was not aware of what he was going to say.
I have listened to him with great attention this afternoon, and, in the main, I entirely agree with what he has said. I do not propose to take up the time of this honourable Council by going into the extremely vexed and complicated question of currency reform, but I will briefly state reasons for supporting the hon. member. To begin with, & proposal was set forward by my hon friend on my right (Mr. Osborne) at a previous meeting that we should repudiate all British coin which has poured into Southern China for many years past. It appears to
that that
be would
an absolutely indefensible action.
would Personally I look upon it
as politically immoral, and I feel very sure that that view would be taken by His Hajesty's Ministers at Home, sup- posing the scheme were before them. I have already stated in this Council that I think it inadvisable to continue the scheme for re-
me
demption started by your Excellency's predeces- sor. It has been given a fair trial for some
to years and is found be costing the Colony a large sum of money without an adequate return. I also endorse the remarks made by the hon. member who moved the resolution that prohibition, as we now stand, of Chinese coinage is most inadvisable. As I have already stated on a previous occasion, I cousider the attitude of the Government at present as the correct one, We know that for many years past the Government has carefully and anxiously followed the currency question, but I believe the moment has not yet arrived for any special action on the part of the Government. It is unquestionable, in my opinion-although there are others who do not agree with me-that our coinage, as trade now exists, cannot possibly be
ago,
to
avoided and by which redemption can be effected without additional loss to the Treasury. I would suggest that the old coins be demonetised only so far as the public are concerned; that is to say, that they continue to be legal tender to Govern- ment and cease to be legal tender to others. The effect of this would be that a certain quantity would annually return to the Treasury and could be melted down and re-cast into new coins. Our local exchequer by slow degrees gorged itself in the past with unwhole- some profits from subsidiary coinage, and if redemption be the only acceptable avenue to reform, then let it in similar manner disgorge by slow degrees in the future. Meanwhile the new coin would circulate at par and be legal tender both to Government and the public. The honourable member fears that the Chinese will continue to use Chinese coins-that they will prefer eleven Chinese 10 cent pieces to ten British. That may or may not be so. Again I will not argue the point, except to say that if the Chinese prefer their own coins, it will be their own affair and does not in the least affect the main principle of my scheme, which is that a coin at all times worth its face value and in further answer to this argument I can would be available to those who wish to use it; only repeat what I said before that those who continue to accept depreciated coins will have no one but themselves to blame for any loss they may suffer.
HIS EXCELLENCY-Gentlemen,-The hon. member at the end of the table who represents the Justices of the Peace has told us that he is willing to withdraw his resolution if the Government will give him an assurance that they will not accept the scheme proposed by the hon. member on his left, except as part of a large scheme of currency reform. I have given much thought to the scheme, as I promised that I would do, in so far as it was possible to give thought to a scheme of which only the very briefest outline was given by the hon. member
com-
do not intend to deal with this matter of a new coinage except as part of a prehensive scheme of local currency reform," and, I may add, of systematic redemption. The hon, Mr: Osborne proposed a scheme which differs very considerably from his original one, should be two parallel forms of legal tender of by which I understand that he meant that there
of the Colony is concerned. That is to say, coinage in this Colony so far as the Government mercantile in other words, that the whole
community of this Colony, the whole of those. carrying on the trade of this Colony with China, should repudiate, but the Government should not. The Government should continue to receive as legal tender the coins it had issued, but that the community should not, I am unable to see how the Government of the Colony can dis- sociate itself from the community of the Colony, how the Government can adopt one form of legal tender when the Colony which it repre sents disclaims and repudiates that form of To my mind the one is as much a The legal tender. scheme of repudiation as the other. Government of the Colony was referred to by the hon. member in his speech as if it were some outside committee existing for its own purposes in this Colony. It had gorged itself with profits and it was to disgorge those profits. can only say that the Government of this Colony represents the taxpayers. The taxpayer of this Colony, in other words, the mercantile community, receives the benefit of the coins put in circulation. If the Government disgorges, the
is taxpayer disgorges. There separation between the Government of this Colony and the mercantile and trading interests. One minor point before I sit down. I would correct the hon, member for the Chamber of Commerce, who told us that my predecessor instituted the scheme of withdrawal of certain quantities of subsidiary coinage tendered in payment of taxes, and so forth. That is not strictly accurate. My predecessor did scheme further than not institute that to send Home large quantities of unissued The scheme was instituted in the stock. hiatus which occurred between his leaving this Colony and my arrival,
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