Mr. SILVA, (1st Audit Clerk),
Can you state the profit during last 12 months, reckoning loss on Exchange on remittances to pay for the coin.
8th September, 1884.
Statement annexed.
J. M. SILVA.
PROFIT ON SUBSIDIARY SILVER COINS.
W. H. MARSH,
Colonial Secretary.
WHEN RECEIVED.
WHERE COINED.
RATE
OF
PROFIT,
REMITTANCES.
1879,
Royal Mint,
s. d.
3/103
12
1880,
R. Heaton & Sons,
3,93
5 %
1881,
Royal Mint,
3.92
6.04%
1882,
R. Heaton & Sons,
3,94
4.43%
1883,
Royal Mint,
3/82
12.09%
R. Heaton & Sons,
5.05%
Average Profit, 7.46%
No. 32.
(7)
355
SIR,
TREASURY, HONGKONG, 22nd May, 1885.
With reference to the Secretary of State's Despatch No. 81 of April 1st on the subject of One Dollar Notes, which His Excellency the Governor has been pleased to refer to me for report, I have the honour to submit the following observations:- 2. Lord DERBY sums up the matter as follows:-"If inconvenience is still felt in the Colony owing to the deficiency of $1 notes, the only course to adopt will be that which has already been put before you with the sanction of the Trea- sury, whereby the Colonial Government itself should undertake the circulation of these notes against a bullion reserve." It now becomes my duty to point out that, in the present state of the Colonial Revenue, the demands upon it being so nu- merous and pressing, so conflicting, I may almost say so bewildering, the heavy expense of issuing and maintaining notes is ont of the question. The incon- veniences of course will remain, but it is the unanimous opinion of those best able a liberal and constant supply of to judge that they may be much diminished by subsidiary silver coin.
3. I trust therefore that the Requisitions I shall have to make for this des- cription of coin will not alarm either the Colonial Office or the Treasury. It must be clearly borne in mind that it is impossible to flood Hongkong with these coins, As fast as they as a colony like Mauritius or Ceylon might be flooded with them. arrive they are bought up and sent into China, where they seem rapidly to be becoming a popular and useful coinage, the only oue, except in copper, that there is. There is not the least symptom of a cessation of the demand, nor of limit to the amount of coin that could be disposed of. The only way to avoid the inconveniences consequent on a scarcity of small coin here at such times as Chinese New Year, &c., is always to have a reserve to fall back upon.
any
4. Two shipments of these coins, amounting in all to $270,000, have been ordered from England.
I have the honour to be,
I annex a report on this proposal from the Honourable T. JACKSON, Chief Manager of the Bank (Hongkong and Shanghai) I agree with him that the proposal of the Treasury cannot be recommended. Moreover it would be contrary to express instructions of the Lords of the Treasury to issue Token half dollars. See Government Gazette No. 2 of 1867. We have made an average profit of 71⁄2 per cent. during the last five years on the imports of Subsidiary coins. Therefore it does not matter how large the drain of these coins may be.
Submitted.
8th September, 1884.
The Hon. W. H. MARSH, C.M.G.,
W. H. MARSH,
HONGKONG. No. 34.
Colonial Secretary.
SIR,
Colonial Secretary,
$6.
$0.
&c.
agree.
But for Executive Council.
G. F. BOWEN,
Governor.
9th September, 1884.
Considered in Executive Council this day. The Council advise that no change should be made in the coinage of the Colony.
10th September, 1884.
J. H. STEWART Lockhart,
Acting Clerk of Councils,
6
Sir,
Your most obedient Servant,
A. LISTER,
Treasurer.
(8)
DOWNING STREET,
17th August, 1885.
I have the honour to acknowledge the receipt of your despatch No. 244 of the 26th of May last, reporting that your Government has decided against undertaking an issue of One Dollar Notes, and proposes to meet the difficulty arising from a scarcity of subsidiary currency by an increased issue of token coins.
Although there does not seem to be any present danger of these coins being forced, perhaps at a discount, I think it right to remind you that, in view of such legitimate a possibility in future, they should only be issued in response to a demand, keeping the supply short rather than full.
I have the honour to be,
Sir,
Your most obedient humble Servant,
FRED. STANLEY.
Governor
Sir G. F. BOWEN, G.C.M.G.,
&
7
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