Bar silver is worth about 100 dollars, whilst the price of Silver is at 11th premium, and unless Exchange rises to 225 it would not be possible to coin dollars with profit.
Nevertheless amongst the curious anomalies, so difficult to explain in connection with this intricate subject, is the fact that the Hong Kong dollar is at this moment at a slight premium here. Sales of Hong Kong dollars at 1/2 per cent premium have actually taken place, and in most shops in this city an allowance of 2 cents, or 2 per cent is made on payments in Hong Kong dollars in lieu of Mexicans.
I presume that if an additional $100,000 were thrown into the Market in Hong Kong, and if they could be retained here, it would obliterate this distinction. Nevertheless, were it not for the experience which I have already gained, I feel that such a circumstance, though local, would have induced me to infer very important general results for the future.
P.S.
I have the honor to be,
May Lord Duke,
Your Grace's most obedient, humble servant,
Richard Graves MacDonnell
Governor
This Despatch has been unavoidably detained till the next outgoing mail of the 15th Instant, for the purpose of verifying certain details in the inclosed returns.
11th October, 1867.