4.

7

185

over

bullion equally rich in pure

silver, and it would be a mistake

to

say that its shape and stamp

supposed to add to its value in China as

a

they

do to the value of a shilling Crown in England. Herein therefore lies the principal secret of the Mint's inactivity, for there can rarely occur such a combination

of

circumstances as to make it

profitable to pay seignorage and premelting charges merely to

convert bullion into

a coin, which

in China will still continue to be

as

bullion

treated and valued simply as bullion and very probably be again here converted into Sycee.

To the other

question

5.

I make these remarks because

many hastily suppose, that the Chinese Proclamation gives any other value to the Hong Kong Dollar

than

the

an

admission that it contains

quantity of pure Silver certified by this Government.

I have the honor to be, Your Lordships' obedient Servant,

Richard Graves MacDonnell

Governor

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