258
TAOTAI WEN'S VIEWS. WHAMPOA VERSUS HONGKONG."
THE TAOTAS. TALKS OF RAILWAY SCHEMES
IN SOUTH CHINA,"
5th inst. Total Wen, as the mouthpiece of the Viceroy at Canton irrespective of his own ability and power, in a decidedly interesting personality. Like a diplomatic courier he has in unexpected acquired the habit of tursing up
There are no places at unexpected times. drums or banters or Baming garments when the Taotai is on the road; he covers his trait with the skill of a secret service.
Yester agent. Hongkong, making day he paid a flying visit to Thomar Hotel his headquarters. He spent Just twelve hours in the Colony, but his busi ness occupied exactly an hour. The remainder of the time was spent in smoking cigarettes and genially discussing airy trifles of apparent. ly
no importance with those few, who are favoured with his intimacy. He was hidden to the world, until he was handed the card of a Hongkong Telegraph representative.
"Where did you come from? How did you 'know I was in Hongkong?".
With that diffidence, which is the born at tribute of all journaliste, the Telegraph scribe disclaimed any suggestion of prescience..
A long dour-looking individual who seemed to act as a snil of Unofficial guard-another guard, it should be stated, squatted outside the Tantal's door and looked on the pressman with distinct disfavour-came forward and, inter- preting a glance, disappeared. The Tautai, smiling generally, as if relieved to find that his visitor was only a journalist, made ready to offer the usual welcome.
A HONGKONG DIPLOMAT. Taotai Wen, to whoni is attributed half the official misdeeds of Cantup, is far trent con- forming to the ordinary idea of the beetle- browed conspirater. A middle-sized cas, be spectacled, with a dragoon's black moustache, and the large black eyes of innocent childhood,, Trotai Wen might be mistaken-in a 'crowd- for one of his country's gentry with no thought or intrigue. fit is the modern China-
man
personified." Not the unbending, stand- an-my-dignity-if-i-die-tor type of Chimaman not the Chinainan who you can see is laughing in your face, but the ready, resou.ceful China man who knows how many beans make' five. "The
moment he enters into conversation the
gives place to
a
THE HONGKONG TELEGRAPH SATURDAY SEPTEMBER 8, 1906.
his way from Tientain to act as chief engineer. P Kwang is the No. 2 engineer in railway wo in China. We had hoped to get Chun Ching Ya, the No. 1 man, who built the railway. from Peking to Kalyan "several "other railways in the north, but as we could
not get him we were t ex erience. Le Kwong, who has had great has been connected with most of the rail- way built in the north, the Peking-Tientsin for examp c. He is a very good man, line, for indeed, and am confident love an extremely competent and alicient official."
•
16-ho a notthern Chinaman?" "Ob, no.. Like Ching, tho No. 1, he is a Cantoneso. he. Cantonese all seem to go in for engineering, mining and technical work generally. Ching and Kwong were but sent to America to study engineering. They did not graduate, but they learned all that was to be learned of railway engineering.
Tautai Wen was not to be drawn on the quee tion of the employment of a Belgian engineer.
OTHER SCHEMES.
You have several improvement schemes in progress in Canton-ile bunding scheme, for instance-"
"That is completed."
"And the removal of the barriers?" "That has been done to the satisfaction of
the Commissioner of Customs"
The waterworks-"
That sclice has been started. It is pro posed to supply Canton with an adequate supply of water whenever we can decide upon the best source from which to obtain the
water,
fa'that a private enterprise?"
a way it is, but the Government has taken 600,000 laels' worth of shares, out of the capitat of 1,200,000 taels.".
"Do you expect to supply the whole of Can ton with water for that sum?
"If mare money is wanted then more money will be found, you may be sure of that. We expect that tire scheme will be completed in about thier years.”
Three years: You will supply, all Cantur
with fresh water in tice years?"
"Oh, certainly," said the Total, with
sublime satisfaction,
VICERON_SHUN
THE GUNNY BAG CASH,
THE JUDGMENT.
ef
nat
In Original Jurisdiétión, at the Supreme Court, his Hobour Sir Francis Piggott fustice, after hearing counsel for both as deliveted judgment in the case in which e Shun Wa sued the Tak Shing Lung firm, Lod eung Tak, managing partner thereof, for damages amounting to $7.155.30, for breach al contract for sain of a certain class of gunay balis Honour said that as the defendant's first. witness had told a straight story, and was not shaken in cross-examination, the case for the plaint-ffs not being strong enough, be would not call upon the defendants for any fur therevidence. Mr. Caithrup, however, submitted that further evidence for the defence should be called, 10
To give him an opportunity of cross- examining them, for he held that the only witness so fat heart had been shaken over the matter of complaints about his goods. He stated in examination-in-chief that he had been in business for za years and never had a complaint, but in cross-examination he had to admit several complaints, some as recently, a in the last two years. It was a serious matter as the defendants had defrauded the plaintiffs. His Honour differed from Mr. Calthrop, 10 whom, however, he paid a high tribute for the manner in which he had worked up and fought the case, and made it hard for defendants to prove their side of it. There was no condition in the contract for examination before delivery of the goods, but that did bar the plaintiff's claim it it was proved that, the defendants sod him goods of a quality inferior to that contracted for, but in this case he did not believe a word of the plain
it's staterneni'about the goods especially about the chopping
of them, by a boatman. The plaintiff deliberately ignored the custom of the irade, which was to prevent fraud;, and if he takes delivery of goods at one port þand forward them to another, and the res cipients say they are not according to con- tract, he must produce the most positive prosi of the identity of the goods, and i was there said his Honour, that he seemed to have failed entirely, for he had pot established lie identity. With the exception of one or two, the packages were bite when they left longkong, the exceptions being sed; but continued his Hon. our, "when they arrived in Newchwang they bad assumed all the colours of the mainbow." Blic was the contract mark, and there was no falue of the proper shade among them. Mr. Slade had moved that the plaintiffs be non- suited, but his Honour had thought it better to hear the defenitant, and see if he was shaken in his evidence, but, as it happened, his story was an honest and straightforward one. After fur ther remarks upon the evidence, his Bonour said the case tailed, because, leaving aside any question of perjury, the plaintiffs entirely failed to prove the identity of the goods returned from Newchwang with those forwarded there, and there must be judgment for the defendants
"There are rumours that the Viceroy is tour, be appointed to another viceroyalty?
"Have you seen the edict issued th-day? Perhaps you know that during his absence in
pale light of child-like inquiry, ed down by Farope, au-rang, the High Commis-
Sharpness of sight which is only
a certain blandness. Remember, Wen is Hongkong Chinaman. He does not belong to the straight-backed, old school variety of di plomat. He had his aducation in Hongkong was educated at Queen's College, as he tola with the charm of a student speaking of his Alma Mater; who a teacher at Queen's College: and owes in great part his passion to that stitution.
Oh, no, he had not come to Hongkong on and he any special business; at least graciously raised his 'tumbler' and waggled it at the interviewer.
THE PORT OF WHAMPOA.
•
1
One of the first inquiries was with regard to the construction of the new railway line from Canton-to Whampoa 7
Not to Whampoa "the Taotai interrupted, "but to Amoy. Certainly the line will touch at Whampoa, but that is merely a circumstance Whampoa happened to be on the roule~"
"Not the direct route"
་་
"Well, the line to Any ches at Wham- poa, but it is on the route surveyed."
It has been suggested that it is intended to develop Whampoa at the expense of Hong- kang."
Yes, I was reading the Hongkong Pelz- graph," said Thotai Wen, but there is no iden that any part of Hongkong's trade should be diverted to Whampoa. Why, we could never take away the shipping of Hongkong and bring it to Whampoa. Besides the Canton-Amoy line is a private affair.
"But it has been under the consideration of the Board of Commerce: the Viceroy has issued proclamations regarding the lands which will have to be parchased; the Britists Chargé d'Affaires at Peking has protested. against the construction of the railway--every-' thing would seem to prove that it has Govern- meat sauction and is backed by the Viceroy."
A PRIVATE ENTERPRISE.
"The Viceroy is not concerned with the line in any way," said the factai. "It is a private enterprise; the Government has nothing to do with it."
"Then it is a concession ?"
"Exactly-a concession to Chang Chen- hsun, the Minister of Commerce, Mining and Agriculture for the two Kwang. Chang is a rich man who went to the Straits and returned to China. He was a director of the Hankow- Canton railway when it started. He is build. ing the railway on his own initiative; the Government is doing nothing in the matter, beyond granting the necessary privileges for the construction of the line."
NEVER AGAIN,
"But it is possible that as the result of bay- ing railway communication with Canton, the port of Whampoa may regain its old status?”
"I don't think so. 'That is not contemplated. Ships of any size cand not be berthed at Whampoa-lhe water is too shallow."
It could be dredged."
The Taotas made a gesture. "The railway passes at a considerable distance from the river. As you say, wharves might be erected and brought into connection with the railway, but how could Whampoa hope to compele with Hongkong? Besides Wampos is not a free port. Hongkong is too firmly established as a port. There is considerable trade between Canton and Amoy and that is the trade which it is hoped to cultivate.
So that all these rumours about Whampoa becoming in time the rival of Hongkong are without foundation?"
"Absolutely." The Taolai was very em phatic-perhaps a trifle too emphatic, but that depends upon the point of view. "The profits? Why, they go to Chang, who will pay a royalty of 30 per cent, to the Governmen', just as all the railways do. It is a mere incident that
sioner, was appointed Viceroy at the Min- chi Provinces, but he has never taken up that appointment. The edict issued th day says that Tuan-Fang is appointed Vice any at Nanking. Chou-fat goes to Minchi. That shows there will be no changes in the south for sume me to come.
You can always tell how things will go by watching the indre. ments in the north. These appointments show that the Viceroy of the two Kwang provinces will remain at Canun; all the stories about his going to this on that province are baseless. They are fabricated by some of the newspapers which don' know what they are talking about.
give you the facts."
Tantai Wen left Hongkong by one of last night's boats for Canton.
HORSES FOR SHANGHAI,
الرحم
IS THE MARKET OVERCROWDED? -
5th inst. Thurty-two Australian.horses, from Messrs. Denliani Bros., Kockkampino, Queensland, were landed in the Colony yesterday afternoon from the China Navigation steamer Changsin, The horses are a fine tor of animals, although they are a bit frisky, but this can easily be explained when one considers, the length of time the animals had been comped-up on board ship and the rough passage they had had during the last few days of the trip. In fact, heavy from the time she left Manila. The 'an.mats, on landing, were removed to Kennedy's ) Imse Repository where they will remain until shipped on the steamer Pientsin, which takes them to Shanghai, in be put up for sale by public auction.
with costs.
CLAIM FOR GOODS SOLD.
5th inst.
in usmary Jurisdiction this moining, his Honour Mr. A. G. Wise, Puisné Judge, presi. ding, g Sas Kong and Ng Yai Hui, partners in the silk firm of Kwan Wo, of Canion, sued the To Wo firm, of Honkang, for the recovery, of the sum of $1,000, due for goods sold and delivered by plaintiffs to defendants. Mr. G. F. Dixon, of Mr. John Hastings' office, anggared for the plainufis, Mr. R. Gardiner, of Mr. 0. Thomson's office, appeared for the defen- D. dants.
Mr. Dixon said the Kwan Wo firmware wholesale silk dealers in Canton, while the defendants were silk merchants in Hong kong.
them they could send them back, if they wore nominat value," and "the king csunot reduce not of the quality ordered. Defendantsesid they"), the weight or fineness of the currency without would.send zo pieces, but they'only sent 19, us the consent of the people." they sold one piece in the meantime. All the other goods they had received the defendants had told...
There were ample grounds then for the formulation of the latter principle for the king only resorted to a reduction in fineness of Mr. Gardiner: Is it not usual to have a
weight when the people refused to lend suf settlement of accounts on the eve of the ficient support in the form of laxes with which Chinese New Year?
he could carry out his arbitrary purposes. Such a reduction in weight and fineness was a veritable falsification" for the stamp on the coin then simply conified the weight and fine- ness of the coin, and to force a coia upon the people with a lesser weight and fineness acted
Witness: Yes, when it is possible. Mr. Gardie Then why did not you bave selilciment?
Witness: I pressed for a settlement, but they said they had not-the money and asked
..for
Mr. Gardiner: Did you give the time? Witness: Yes, but still they did not pay. Mr. Gardiner: Then why did not you sue them before?
Witness: Because they pressed me to give them more time.
Mr. Gardiner: And did you?-Yes. Mr. Gardner Then why are you sueing them now?
Witness: Because we can't get our money otherwise.
Mr. Gardiner: Did you receive and give a receipt for $32 taels?-Nu.
Mr. Gardiner: But here is a receipt, with a certified translation.
His Honpur:
Yes, I've seen it. Mr. Gardiner: You did not sign this receipt? Witness: No.
*
Further einss-examined, witness said. he gave credit for the 19 pieces of gaure re- turned but he had gone credit for the Customs daties paid by the defendants on the gonds, because they had purchased them and after- wards returned them because they could not. sell them.
Evidence was then called on behalf of the plaintiffs to prove that the prices charged, and which the defendants objected to, were the market-prices ruting on the date of the pur chuse of the goods in question. That clased the case for the plaintiffs.
Mr. Gardiner said his case was that the agreement for purchase of the goods was made in Canton, but the plaintiffs did not have them in stock then, and so agreed to send them to Hongkong in a day or two. Goods were sent down, but they were not according to the quality required. No price was agreed upon as they could not show the goods: When the latter arrived in Hongkong they were not of the same quality as ordered, and defendauts wrote and told the plaintiffs so, and offered them an
amotus for them which they thought-reason- The able, otherwise they would return them planiffs sent their managing partner down ip Hongkong to arrange the matter and settle
a price, rather than have the goods returned on their hands. That was done, and payments were made on account until there was a small balance due, and on the eve of New Year's Day the same man came from Can ton to effect a final settlement of the accoust. Certain charges were considered and finally the defendants banded the plaintiffs representa tive $100 in full settlement of the account.
After hearing the evidence for the defence, his lionaur said that the plaintiffs were evidearly on their last legs, and brought this sus in the hope of securing some money to back up their business. Moreover, they kept their books in a very irregular manner, and, all considered, they must be non-suited, with costs in favour of the defendants.
THE ROYAL HONGKONG GOLF CLUB.
SEPTEMBER MEETING,
5th last. The following cards were returned g Captain's Cup (23 entries). Mr. F. Barry, R.. So scr.Bo; Mr. C. P. Chater, 97-13
84:
May Cup (5 entries). Mr. G. H. Edwards, 102-18-84; Mr. K.-1). Harvey, 121-23=97.
The plaintiffs claimed the sum of
Pool-28 entries), Mr. E. D. Sawdy, R., $1,000, which was the balance of an account due for goods sold and delivered to de
92-18-74; Mr. F. R. Barry, R.N., 78 scr, 78; fendants. The actual amount of the balance. A. S. Forrest, 75+4=79; Mr. R. H. Crosse, due was $1,028.98, but the $28.98 had been A., 97–10-80, waived in order to bring the claim within the
The next competition will be hell at Happy
Robertson Farewell Cup.
seas were continually washing over the vesselsliction of the Summary Court. The 1 Valley from Bih to rath September, for the
It was only a few days ago that twenty- walc's N this Colony far the Northern port 10 be sold. In former days the Australian horse dealer made a "good thing" on the China market, but recenly so many Australian firms have taken up the cue to ship horses to China-and nearly every Australian vessel brings fresh horses for auction that one wonders whether some of the firms manage to cover the expenses of freight and insurance, much less the price of the horses, Considering the number of Australian horses that have passed through this Colony, and are sull passing through, all bound for Shangha and the rumour which was current recently to. the effect that a great number of Russian horses are shortly to be suctioned at Shanghai, Tientsin and Vladivostok, we would think by now the Shughun market must be flooded. Nevertheless, it is to he hoped that, Denban Bros. will come out good after the sile,
CATS ÄT WAR.
LIVELY TIMES AT HAST POINT.
Residents
3th in
|
defendants sent their managing partner to Canton to order these goods, because that was their custom, and goods had been previously ordered in Canton in the same way and sent to
in Hongkong The prices were arranged Canton at the time when the goods were ordered. In evidence of the witness would also say that he wrote down the list of the ends ordered, together with the prices arranged to be charged therefor, in his rough ordist book. The goods were subse quently sent to the defendant firm, together with a letter and a bill of lading, and an account setting forth the goods forwarded and the prices thereof as arranged, at the time of n-dering
the same. At that time no exception was taken to the goods or to the prices, bat later on the defendants raised the question that the prices were not the prices arranged. Plaintiffs then wrote to defendants, inviting for them to send a representative to Canton, the purpose of examining their hooks. A man was sent and he must have satisfied the de-
fendants as a result of his examination of the books, for no further objection was made to the account for a long time. Plaintiffs con- tinued to forward to defendants copies of the account rendered, and in the sixth moon of last year Ng Sze Kong came to Hong kong to compare his book with the de fendants, in order to see whether the ac counts agreed. Upon that examination be found the book he saw exarily agreed with tie would be produced before the Court. The defence, he understood, would be that plaintiffs had not credited them with certain moneys paid on account. He and his client had had an inspection of the documents in Mr. Thomson's office, and his client was of opinion that some of them were not genuine, the chops thereon not being the chops of his firm.
THE PHILIPPINE PESO..
REASONS FOR RE-COINAGE.
The following is the endorsement in full of Treasurer Branagan, referred to by Governor Generale in his letter to the Committee of Philipping Interests, reproduced in the Telegraph of Sept. 1, regarding the proposed re-coinage of the Philippine peso. adequate exposition of the principles involved it is worthy of careful sundy by all Americans, that they may be able to correct any erroneous impressions regarding it among the Filipinos.
As an
August 20, 1956, Respectfully returned to the Honourable
Governor-General,
In accordance with your request as expressed
as a tax upon them their consent,
Down to about 18yo the value of silver was fairly constant, At that time the silver in the United States dollar was worth $1,027 and is
cage was discontinued. In 1870 to 1871 there were discovered in the United States the. most remarkable deposits of silver 'known in the history of the world. At the same time new methods of extracting silver from combina tion ores were also discovered and the result of these two factors was that the value of three years from $1.027 10 Sy and within 3 years to 5.73. The general trend of the price of silver was dowdward until 1903, when it reached the lowest known price, about 22-1/4
the silver in the United States dollar fell in
per ounce.
it was obviously impossible to continue the free use of silver as a standard of value for the one essential feature of a standard, is its inva-
ready to resume operations upon a slight in crease in the price of silver. It was therefore the general opinion that a difference of about 35 centavos between the face and balilon va lues of the peso would be sufficiently great, in view of the probable range in the future price of silver, to keep the bullion value sufficiently under the ince value to prevent exportation. Experience has shown, however, that the pre- dictions an to the future course of silver ware not falfilled. Silver has almost constantly risso io vatue since then so that in the early part of this year the bullion value of our paro reached Pro72. According to the meat relishing oks formation available at prezent time it as though the price of silver would continuo its upward course for several years to come.
Now at the late high price of silver $1-3/8d. per quace, between 4 and § por cont: profit could have been made by shipping our pesos to Hongkong in settlement of foreign debts the and had it not been for the law prohibiting exportation of Philippine silver coins, many such shipments would have been made. If silver should continue to rise the point would soon be reached where the profit to be made would be sufficiently high to induce the smug gling of our currency out of the Islands, how- ever rigidly the law might be enforced,
rency.
Again just in proportion as the bullion value of the peso is in excess of its face value, are we maintaining a needlessly expensive cur- It should be remembered that the maintenance of our silver currency involves an interest expense, at best, al P1,200,000 per year, in that we have constantly invested some riability. A yard stick of varying length is no more acceptable than a peso of varying value.
P30,000,000 which could otherwise be carolog. So long as silver was heely used as a standard interest in some other form of investment. by which to measure the value of commodities, It is in view of these facts that the re-coinage so long would changes in the price of silver
of our currency has been proposed. It is to be manifest themselves in changes in the price of
regretted that
How- 1 any change is commodities. Many nations continued theater, the use of silver under these conditions an
Becessary. use of silver in spite of the paralyzing effect it
a medium of exchange will inevitably lead to had upon their bussiness interests. The great such readjustment as long as there is marked Commercial nations of the world, however.
fluctuation in the price of silver. If silver be almost immediately abandoned the free use of silver. England, foresceing the trouble, aban
comes very cheap the danger of counterfeiting will demand an increase in the fineness or doned its use as a standard coin about 183, weight of the peso. If, on the other hand, it though she continued its use side by side with
becomes very expensive the amount of silver in goldt which was made the sale legal tender
the peso must be decreased in order to prevent quantities. In 1873 Germany established a the melling up and exportation of the peso. national gold coinage and the United States relegated the silver peso to a position as sub-
The proposed re-coinage of our currency at a fineness of 7
700 would produce a more durable peso, one in Appearance sidiary currency. In 1876 France was forced to adopt the same policy and since, Austria, Japan, and India have also gone upon a single standard or gold basis as it is called.
The necessity of abandoning' silver as a standard Chip t together will the necessity of its- contiqued
sufficient use to supply a
quantity of currency brought into prominence a neglected hich had been principle of monetary science which -inteshadowed in the
Ricardo, the writings of celebrated English economist. So lang as mature bai been left to set the limit on the amount of the precious metals coined, and the limit thats set worked fairly well, litle thought was given to the question of the relation be tween the supply of the metals and the value of the currency coined therefrom. It was thegulating the supply of them. seen very clearly that many of the economic disturbances in the past were in part due to the sudden changes in the supply of the pre- cious metals whereas they had been auributed to other forces.
In the light of this new principle, that the value of money life other commodities is mea sured by its supply, it was then proposed to make gold the scle standard of value, for the price of gold had remained constant, despite the considerably increased production of that metal. At the same time in order to supply sufficient quantity of money with which to meet the needs of business, silver coins of the same size and denominations as formerly were used. The value of these coins was fixed, not ou the basis of their silver content, but as a
definite prapattion of the standard gold coin of the country and its value kept constant at that proportion by regulating artificially its supply. As for example, the United States silver dollar still continues In represent the exact value of a gold dollar though the value of its silver content is only about half the value of a gold dollar, its value is kep: constant by limiting the supply of them and being willing at all times to exchange a gold dollar for a silver dollar,
One of the first serious problems that pre sented itself to the Philippine Commission was the establishment of a new currency system for the Islands which should embody the es sential element of a stable standard of value. The industries of the Islands like those of all
other silver standard countries were prostrated from the effects of a fluctuating standard of value. It was evident that gold could form no part of our currency, owing to the facility with which gold is absorbed by the Asiatics. Seme- what of a departure must therefore be made from the ordinary gold standard as in use in other countries. To meet the new con- ditions a theoretical gold peso was devised many grains of fine gold to contain equivalent to one, hall the value of the United States gold dollar and the Islands supplied with a sufficient quantity of standard silver pesos with which to transact all its business. By regulating the supply of at the pesos the value was to be kept constant at the value of the theoretical gold peso.
Ap
The introduction of such a system into the Island was sure to cause considerable hard operation may cause pain to the patient. That ship, in the same way that a necessary surgical
one in which the order was entered, and whit People the petition of the Committee of Philio. Treasury, rather than showin, a gain of 80 per
the vicinity of Morrison Hill Road were aroused late on Tuesday night by the noise created by a host of cuts in the neigh bourbond engaging in a regular battle of | Armageddon. What the trouble was about no one could tell, but from the noise created one would have thought that all the cats in long kang were at war, The people in the neigh-
Ng Sie Kong, managing partner of the boninood did all they could to
keep out the
plaintiff firm, was called and gave evidence poise. Doors and windows were slammed, in corroboration of the opening statement, and some stuffed the ends of the sheets into their said that he received a letter frohe defendants cars, but stiff the quilling filtered through, complaining that the price was too high. He had making one think the feline brutes were under lost that letter, but he sent a reply in which he stated that he could not agree with the defend. the bed The youngsters were awakened and side, the banging of doors, and the language all moneys received fraan defentiants were e what with their bowling and the muating out-
ants on that point. He kept a cash book and of the sterner sex, things really hummed., Bul tered in it. No money was received which was not entered in that book. The chops of the cats would not stop. They scratched and clawed each other and dived about the back the firm were produced in Court, and did not yards in a manner suggestive, of nie weer die plaintiffs and put on the documents. The brawl which nearly drove une fran wild west apparently correspond with those alleged to be mears were adopted to drive away the infuriat documents were therefore, it was held, farger animals, Bonts and shoes, bits of wood, ies. Plaintiff never at any time sold defend ed
pine Interesis might well be passed over in silence, for it is supported by arguntents and statements revealing
for
one having a bullion to the present peso and almost exactly similar válue several centaves greater than the present peso had when its fineness and weight wero determined. It we have so far been able to maintain the par value-of-the-present-pesa. thero is absolutely no foundation for the state- ment that we cannot in the future maintain at par a peso having a greater ballion value than the present one had at first. During the last three years the bullion value of our peso bas varied from $.76 10 P1.072 and yet i value as currency has varied only two centavos.
it cannot be emphasized too strongly that the value of our peso is not determined by its silver content, but that it is determined bỷ re-
When the sup
ply of pesos is too great and the tendency is for them to fall in value, the Treasurer bays in the surplus and withdraws it from circulation. The diminished supply will, of course, raise the value of the pesos left in circulation. On the other hand, when there are too few pesos in circulation and the tendency is for them to rise in value, the Treasurer sells enough to meet the demand and the value of the pesos is there. by decreased. It is for the purpose of making these purchases and sales that the Gold Stand.. ard Fund was created. On September 1, 1906, this fund will contain only one million dollars United States currency of borrowed funds. Strange as it may seen the Government has not only not been to any expense on the $13,500,000 borrowed for this fund but has actual- ly made a small profit on the transactions.
Should re-coinage become necessary, several things of importance are to be noticed.
20
It would have absolutely no effect upon the currency value of the peso. As was shown above, in the face of a variation of 31 centavos the bullion value of the peso within three years, there has been a variation of only two centavos in its actual currency value and this due only to the condition of our foreign trade balances. The Treasurer of the Philippine Islands has been willing at all times to exchange for our pesos their legally deler. mined equivalent in gold coin laid down in New York. Not only has he been willing to do so but he has actually done so to the amount of $13,449,868.88, besides actually exchanging $11,814,442.14 for P23,628,884.28 presented at the office of the Treasurer, Juan de Mariana of blessed 16th century memory.to the contrary notwithstanding,
2.-Instead of involving a great loss as stated. recoinage at a fineness of you, the limit set by Congress, would result in a net increase in the amount of our currency of nearly 25% besides paying all the expenses incident to the re coinage.
3-It would entail no loss upon the people for the new peso would have exactly the same purchasing power both at home and abroad. In fact the increase in the amount of the cur rency occasioned by the re-coinage will prevare
necessity of purchasing bullion for the pur pose of coining mora pesos to meet the in- creased demands of business the cast of which would otherwise have to be borne by taxation.
4-Business would not be affected in the least for the currency value of the peso would remain unchanged.
5.No confusion would be caused for few people would be able to distinguish one peso
from another,
6.-The holders of the present pesos could suffer, no loss for the new peso would purchase as many goods as the old,
2.-Foreign exchange would not be affected in the least fixed absolutely within the limits sel the rate charged for New York exchange.
by by the Government.
would also be gone for they would be unable 8.The occupation of the money 'changers to sell the present peso for more than the new peso unless they incurred the risk of smuggl ing which would of itself be ample justification
prices had largely adjusted themselves to the new currency and while the difference in value between the new and the old peso was only from 10-13 centavas. The local currency. had years circulated at its bullion value and there was nothing unjust in the Government for re-coinage. buying it in at a rate fixed on the bullion value of the silver contained. The only hardship worked on the people was during the short period when the high prices due to the cheaper Mexican peso were maintained while people ad only a more valuable pesa with which to purchase goods, it was not long, however, after the enforced use of the new currency be lose competition lowered the prices of goods to suit the newer and more valuable peso.
FRANK A. BRANAGAN, Treasurer, Philippine Island.
in the first endorsement, I have the honour to submit the following comments upon the requarks set forth in the petition of the Com. mittee of Philippine Interests that the Philip pinc ommission refrain from taking any action in regard to the re-coinage of l'hilippine the introduction of the new system resulted In a loss of 25 per cent. of the "public wealth' currency it a lower fineness, autliority for which was given in the recent Act of Congress. (by which teras is probably meant the circulat Were it not inconsistent with our generaling medium) is mantly absurd for two reasons: First, the process of redemption has attitude to ignore or pass over fightly the dis- cussion of questions of vital importance to the update entailed an actual loss upon the cent. of the above estimated luss as stated in the discussion under consideration. Second complete misunder-the larger part of the local currency was withdrawn from circulation at a time when standing not only of our own currency system bat of financial affais in general. Repre- senting as it does, however, an apparently conscientious effort to arrive at the truth according to the light given, it is thought best to attempt to clear up some of the misunder standings involved by a very simple statemcot of the facts under consideration.
Previous to the last quarter of the nineteenth century the ratio between silver and gold was fairly constant at a ratio of from 14 to 16 of silver to ane af gold. The only limit set on the amount that could be coined was the limit of production. In other words, as far as the amount of the currency in circulation was con corned people were at the mercy of the forces engaged in the production of the precious me tals. As fast as they were mined, that portion the face value of the coin was at all times not used in the as was coined, consequently very close approximation of its bullion value. The supply of the metals did not always were entailed thereby, The phenomenal influx gold and silver incident to the opening up Mr. Gardiner, for the defence, said that his the fabulous mines of the new world wrought and again the sound of broken glass was heard case was that nothing at all was dine, as pay. many economic changes though they were few which meant that one of the "sinaters had ments had been made without the defendant who saw clearly the relation between, these missed the target and i;
ind struck the window of a being given credited for samme, and proceeded changes and the increased amount of currency neighbour instead. The fight lasted for over half to cross examine witness. After a somewhat occasioned and none who divined a remedy."
It was during these long years when the an hour, and it would have continued for long, lengthy examination of the book se to the according to a resident in the neighbourhood, various prices at which plaintiff sold this dass
money in circulation was limited by had nos a pistol shot rang out, followed by of goods, which the witness explained by state the productiveness of the mines of silver and I've got him," and the tabbies cleared, leaving that they were of different qualities; and gold that the principles were formulated which ing one on the baulefield. Then peace reigned, therefore differently priced, witness said it are quoted in substantiation of the position of *You know that work is going ahead with And, in the words of the poet, the residents was true, that after a time defendants, com- the Committee of Philippine Interests, Such, seemed to point to à continued low price for that he had fired off ten dollars' worth of ame
sought "tired nature's sweet restorer, balmy plained that they not sell the goods as they for example, as all legal money most have were not of proper quality, and witness told metallic valus exactly equivalent to te
Whampoa is on the route to Amoy."
KOWLOON-CANTON RAILWAY.
"As to the Kowloon-Canton railway, has anything been docs or is anything being done to start operations from the Canton end?"
"Negotiations are proceeding between the Waiwupu and Mr. Bland of the British Chinese
a
Corporation.' When these are completed then and empty (whisky) bottles were hurled at the ants to arrange their own prices, the prices | keep pace with the needs and many hardships efficiently "less than its, face value at all somewhere up Samien way. Alter milest
wo
will start operations--that will be in a short fighting mob, which increased the noise, for were arranged altogether at the time of the time, I believe,"
What do you consider to be a short time 29 as one missile got home there would be a purchases,
A month. Yes, I should say a munthoan and the fight would wax faster. Naw will see the work began. Have you started boring through the tunnel yet?"
About
The interviewer said he understood that the
engineers were only awaiting the arrival of the drills from Forland. Tapiai Wen seemed oly mildly interested in the Kowloon-Canion railway.
* CARTON-HANKÓW NAILWAY.
With regard to the Yuch-ban railway-?".
the line to Hankow. Kwong Shop Man is on sleep,"
of
amount of
THE genial skipper of a local steamship which runs between Bangkok and one of the "pestil- ential outports", had invited a few friends for dinner last night, says the Bangkok Timas,. It accurred to the host earlier in the day that game should properly form one item of the In determining just how much silver should ena. So be took counset with the chief engi be put into the new pesa two important consi ncer, and they borrowed a launch with lethal derations presented themselves.
First, the intent on the wily snipe bird. They had two size and denomination of the new peso should guns, a hundred or so of cartridges, and other be similar to those formerly in use. Second, explosives, in the shape of a case of soda water the amount of silver contained should be with its ordinary accompaniment. They landed umes so there would be no object in export walking over inundated paddy fields, they in Payne of foreign debts as was returned with their "bag" The "chiel" hid the case wilk the Mexican peso, otherwire there shot out crow, one owl, and a minab, whilst wrout hehe way of controlling the supply, and the skipper carried by the feet a small bird, through the supply, the valus, The new peso unclassified. Their main grievance was thus is designed for use solely within the Philip although ashore, there was nowhere to sit down, pines and the settlement of foreign debis pro- but they made up for the deficiency on the vided for otherwise.
At the time the weight and fineness of the of their plumage, were served up, and each of
way down. In the evening the birds, divested peso were determined upon silver had reached the guests was invited to guess which of the the lowest known price and the indications fowis fell to his lot. The skipper" lamented
some years owing to the large number of pro munition. "Next time. I'll go shooting in the ducijyg silver mines lying idle which worn | market,” he said, "poultry is cheaper there,”