1.9% to 1.70 in London, it ought not to circulate at a higher rate in China.
The difference of Exchange between Rupee and Dollar is very remarkable.
At Calcutta $100 Exchange for 208, to 216 KT. at Hongkong $100 Exchange for 225 to 227 (4) difference. 1747.
The
Note
The large Opium traders, make advances in Calcutta, at the rate of 214 Rupees for 106 Spanish Silver Dollars, which converted into Mexican, allow 5 per cent premium. In Hongkong these 100 Mexican Dollars enable them to buy Government Bill on Bengal, for 225 to 227 KT. At the end of the year 1842, when the Specie and Bullion arrived here from the Northward, and Rupees were plentiful, $100 Exchanged for 240 Rupees: This great difference of exchange could not exist between British silver coin and the Dollar.
There is another circumstance
which
The Rupee is essential at Hongkong at
250
which renders it advisable that British coin were the circulating medium of the Colony. One Million of Rupees have just arrived in H.M.S. Ship Fido, from Calcutta, the troops are paid in Rupees, at the rate of 225 for $100. The Dollar is fixed here at the Exchange of 4s-12 pence. The intrinsic value of the Rupee, as shown above, is 1s2 pence. $100 at 4s9 pence, give 5200
As 225 at 1s2 pence, give 4960
difference... 240 pence
The soldier therefore loses 240 pence on every 225 Rupees, which is nearly equal to twenty days pay, in the year. The intrinsic value of the Dollar in specie is 4s5 pence, it is issued to the troops here at 5s2 pence, which shows a difference of seven pence, in each Dollar between the intrinsic value of the Coin and the rate at which it is issued by Government; In the West Indies, Canadas, Gibraltar