coin at right per cent discount, and the process of circulation i comewhat as follows. The commissariat officer advertises for sale Bills on the Government of Inchia, or England, and by receiving for them this depreciated coin selli them at what

are

nominally most fammable rates. This money

money he expplies to the Flonial Treasurer in the required quantity, and with it hi pays the troops, and Government contractors. Being thus passed into circulation it is paid back into the Colonial Treasury as taxes, and the surplus is collected by the Bank, and by private individuals at the slepreciated rates, and agam :spended at a profit in the purchase of the Government. Bills above named - Thus Government

servants are never

paid now

in

186

Spanish Dollars, the real currency of the Colony, but always (when_eufficient is procurable ) in that species of coin which is at the greatest discount; as it is obvious that with this both Yovemment taxes will be houd, and Jovernment Bills purchased-

&

as

7. English silver money does not pass current in China at its proclaimed value, it's intrinsic worth in pure silver as compared with spanish dollars being only 907 to 1000; therefore, all provisions being brought to the Colony from the mainland, the importers being compelled to take back their proceeds in Spanish Dollars (or in goods, to be pinchased with Spanish dollars) add of course to their price a sum equivalent to the market

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