Materially, 1 Government could

could never

dollars from the

for the Colonial

exclude Mexican

currency of the Colony,

unlike Hongkong dollar bore a premium

of 20%

nu

them in trade operation in China. No Merchant would conclude

transaction in Hongkong dollars which had to be paid in Hongkong dollars who could

conclude the same

same transaction

The

on th

a

Mainland by paying in Mexicans at

a cost of 20% less.

unable to see the error

the ever of

I am

calculation pointed out by Mr. Mackenzie

as

existing in my memorandum of 6th April last with regard to the exchange between dollars and Rupees. I lost the intrinsic values of the silver and

284

afforded an equal Mint charge in India and Hongkong the mention of sale in the Bazaar appears therefore quite irrelevant.

The

question of the cost of producing

Hongkong dollars as

against those of Mexico

is very important and though Mr. Mackenzie does not perceive it, I believe that Mexican dollars can be produced at a

very much

cheaper rate, in fact almost as bar silver - Mexico being a silver producing country the silver ore in all probability go direct from the mines to assaying & refining house attached to the Mint- The process of refining, melting, and

assaying

is the

same

for bar silver as for

and the cobra cost-

containing and the

a can in lead

veta

of producing

of a bar of silver ofte

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