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THE ONE DOLLAR NOTE.
We subjoin the memorial to the Government upon the above subject, together with the me morandum accompanying it setting forth the reasons for having it drawn up-
MEMORIAL.
To His Excellency Sir ARTHUR EDWARD KEN- NEDY, K.O.M.G. and C.B., Governor of Hongkong,
The Memorial of the Undersigned Resideuts of Hongkong bumbly sheweth as follows, that is to suy
Your memorialists have learned with mach regret that, under instructions received from the Secretary of State (for reasons brought un- der his consideration by the Lords of the Trea. sury,) your Excellency may be placed under the necessity of calling in the One Dollar Notes issued by the Hongkong and Shanghai Bank- ing Corporation now in circulation, and of pre- venting the issue of notes of lose value than Five Dollars for the future.
2. Your memoralists feel assured that, on issning those instructions, the Secretary of State could not have been aware of the grave public inconvenience which the step thus in contemplation would cause in this Colony, or have had present to his mind the reasons which induced your Excellency to permit the issue of the uotes in question in the first instance.
3. Except so far as the inconvenience is modified by the issue of bank notes, this Colony is practically without the benefit of a money currency. By a proclamation of Her Majesty the Queen, dated the 9th day of January, 1863, the Dollar of Mexico has become a legal tonder bere, and that is the coin at present in circula- tion. But according to the custom and usage prevalent in this Colony, as in other parts of China, in all Mercantile transactions the Chi-! Inese Tact weight, and not the Dollar, forms the l standard or unit of value, and by the recog nised practice of merchants $1,000 are regard- ed as the equivalent of 7.17. Taels weight of silver.
4-The Quincse, bowever, have adopted the habit of stumping, or as it is locally termed chopping" the dollare, which come into their possession, anul, as a result of this practice, a very large quantity of mutilated and light dollars are at all times in circulation which do not represent the value of $1,000 to Tael 7.1.7., ; in other words cannot be weighed at 7.1.7. Persous, who receive such dollars as these, find that on exchanging them or on paying them away at Chinese stops, they are frequently waleted of from five to ten or even more cents
per Dollar.
5. The class upon whom this system pressed most bardly were those belonging to the poorer orders, which received its wages and inade its disbursements in actual coin. This portion of the community suffered a positive and most material injury from the "shroffing," or, in other words, systematic depreciation of their money in Vogue among Chinese money ebangers and other traders; but all classes were constantl. subjected to loss and an- uoyance from the same source.
6. The introduction of the One Dollar Notes in this state of circumstances afforded, from the commencement, the greatest boon to the cum-. munity, the notes being readily taken for their full value, and without deduction, both within the Colony aud in the neighbouring European settlements.
7-Apart from the foregoing considerations, the Mexican Dollar has always been found a weighty and cumbersome coin in personal use. 8.- Under these circumstances, improvement in the curreney being for the present impos. sible, the contemplated withdrawal of the One Dollar notes, or any restriction upon their fature issue, would, in the opinion of your memorialists, canse great public inconvenience. Your Memorialists, therefore, humbly pray, That Your Excellency will be pleased to take such measures as may be deemed advisable to prevent the contemplated withdrawal of the One Dollar Notes issued by the Hongkong and Shanghai Bauking Corporation, now in circala- tion, or any restriction apon their future issue. And your Memorialists will ever pray, &c.
5-5-5-5
74
TREASURY 9862
The above memorial bas already been signed by over 370 persons, including the Representa tives of all the Important Mercantile houses and establishments, and it is anticipated 866 17 JUN 74 From 100 to 150 more signatures will be o tained.
MEMORANDUM AS TO ONE DOLLAR NOTES.
Tu June, 1872, at the requisition of several members of the Community, the Hongkong and Shanghai Bank applied to His Excellency the Governor for permission to make an issue of one dollar notes.
This was done with the view of meeting a great public demand, wore especially on the part of householders and the labouring classes, who have numerous small payments to make, and who have almost invariably to anffer very considerable loss from the practices of the money-changers and native shopkeepers, who take advantage of the defecta in our system of local currency to inflies serious losses ou those who deal with them.
Hie Excellency granted the required per mission, and the Bank, at considerable outlay, obtained and circulated the notes in October, 1879.
The correctnees of His Excellency's policy has been abundantly proved by the fact that ever since the first issue of these notes they have steadily increased in public favor until now. There are about 175,000 in circulation with a daily demand for more.
the
In D.cember, 1873, His Excellency the Governor received 2 despatch from Secretary of State intimating the disapproval of the issue by the lords Commissiocers of Her Majesty's Treasury for reasons which it is submitted, under the peculiar nature of the currency in this Colony, are altogether unten- able here. This despatch further instracts His Excellency to order the withdrawal of the! notes at present in circulation, and to prohibit any further issne, unless serious public incon-¡ venience would result from such a course, or any legal difficulty should be in the way. His Ex cellency hae, in consequence, called upon the Dongkong and Shanghai Bank to shew canae why the One Dollar Note issue should not be stopped, and those notes now in circulation called in.
The Bauk Directors being fully convinced that the issue of One Dollar Notes in Hong- kong is a great public booz, and that their: withdrawal from "eirenlation would inevitably result in serious loss and inconvenience, desire those of the commnsity who agree with them to sign the accompanying memorial, which will be duly forwarded to the Government.
In the opinion of the Directors such a memorial, if mumerously signed, is best adapted to convince the Secretary of State of the de. sirability of the one dollar note issue.
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