Difficulties they will be found insurmountable. But the reasons against the maintenance of the Gold standard at our Establishment, which are mere entrepôts for the China and the Indian Ocean trade, occur to me as irresistible if it were clear that, and in point of fact, the gold standard does really prevail.
But taking together the successive inconsistent orders in Council with the decision of the Supreme Court at Hong Kong referred to in the annexed blue book, I think it more probable that the silver standard is that which in reality prevails, while the law is intended to give an option. Indeed, where so little consistency is apparent, we can speak of an "optional standard."
Over and above other coins, the Courts in Canton say that payment of a debt may be made in various coins, but the Hong Kong Court says that if specially contracted in a certain coin, it must be paid in that coin. And as we know that all transactions (or nearly all) are in dollars, it seems to me that the practical effect is to make dollars the standard coin. Alone can we account for the alleged depreciation of the Sovereign.
On the whole, I think there is no occasion to disturb this state of things, however anomalous. And therefore, beyond setting Fu J.M. right as to some of the facts above alluded to, the only substantial question to consider is his proposal to coin British dollars at Hong Kong, or at Singapore, if the value of the dollar is to be finally established. I think this proposal may be found very well worth considering.
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