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collecting the Sycee, from the various Firms, here together with the losses incurred on interest.
I should not realize anything approaching the premium realized by selling Sycee at the Average rate during the last two years, which accounts to about 7 per cent.
Moreover, the new British Dollar to be coined at the Hong Kong Mint cannot be expected to be received by the Native Communities of the Northern Part of China and Japan for a period of time and would, therefore, be useless to the Chest for Expenditure for Consular and Navy Services in those Countries.
Again, unless the Local Government proclaim that the British Dollar is to be the only legal tender here, it will be mere waste for purposes of account to this Department to retain only one species of Dollar, viz., the Mexican, in the Chest.
On the other hand, should such a stipulation appear—and the matter, I believe, is left for decision until after the arrival of the new Governor of this Colony—it would be more advantageous to coin the Mexican Dollar for local purposes here, which can be done free of all charges during the first two years after the opening of the Mint, than to retain and send the Sycee and have to pay for Coinage.
There must be a supply, as before stated, of Mexican Dollar kept in the Chest for the expenditure of the Department out of Hong Kong for some time to come. The question of importing Bar Silver, should exchange rates warrant it, or Mexican Dollars, to be procured in the interim on money exchange, should be considered.