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me,
that the admission of the dollar by the Chinese Authorities in payment of Customs duties at the Treaty Ports is of little use to the Mint. Such admission, though regarded by Sir Hercules as ... very important, is merely an announcement that the dollar contains the amount of fine silver which this Government professes to put in it - No Chinese Proclamation can make it so. The Chinese merchant will not accept dollars of that kind unless the Government does or can guarantee that they are of the proper fineness.
A legal tender dollar would cheapen the manufacture of the dollar, for it would render silver in that form a preferable bullion within the Province to silver in any other shape - till it becomes the currency of the country.
The Government has no means of effecting the adoption of the dollar as a currency in China, a result which Her Majesty's Government is aiming to achieve.
I can raise no objection to Her Majesty's Treasury directing payment to be made in Hongkong dollars for all Imperial services in China, as suggested by Sir Hercules, provided Her Majesty's Treasury pays for the dollars. It would, however, be frequently a very costly proceeding.
Thus, at present, it would involve a loss of 3 per cent on 300,000 dollars per month, or 9000 dollars per month - a most extravagant mode of assisting the Mint, if Her Majesty's Government should decide on adopting the suggestion.
Sir Rutherford Alcock has already made a similar suggestion regarding payment of the Diplomatic services, but was obliged to recall his instructions when he learned from the Auditor General that compliance therewith would entail a heavy loss either on the Government or on the contractors.