Inclosure 6.
278
C. O.
The Daily Press.
HONGKONG, JANUARY 19TH, 1894.
A BRITISH DOLLAR FOR THE FAR EAST.
ITS COINAGE RECOMMENDED BY THE SPECIAL COMMITTEE OF THE CHAMBER OF COMMERCE.
The following report by the Special Committee appointed by the Chamber of Commerce to consider the expediency of coining a British dollar has been forwarded to us for publication.
Hongkong, 18th January, 1894.
The Chairman, Hongkong General Chamber of Commerce,
Dear Sir,-We, the undersigned, were appointed a Committee, pursuant to a resolution of a special general meeting of the Hongkong General Chamber of Commerce, held on the 12th July, 1893, "to enquire into and report on the desirability, in the interests of trade, of the coinage of a British dollar equal in weight and fineness to the Mexican dollar, for circulation in the colony of Hongkong concurrently with the dollars which are now legal tender," and we have now, after full enquiry and consideration, to report as follows:-
We find that the Mexican dollar and the Hongkong Government dollar are the only legal tender in the colony, and that the supply of Mexican dollars in the London and American markets has very considerably diminished during the past six months. This is chiefly due to the heavy fall in the gold price of silver since the closing of the Indian Mints to the free coining of silver on the 26th June, 1893, and to the repeal of the Sherman Act in the United States on 21st October last. The Mexican exchange has been unable to adapt itself to the serious decline in the price of silver, Mexican dollars continue extremely scarce, insufficient for the requirements of the trade of the Colony, and there is no likelihood of any increase in the supply under present circumstances. The scarcity of Mexican dollars has seriously reduced the circulating medium in Hongkong, has been highly inconvenient and may very easily at any moment become dangerous. The Hongkong Government dollar is now practically out of circulation, and appliances no longer exist for the coinage thereof.
The Japanese Government have on 16th October last, under Imperial Ordinance No. 103, appointed a Committee of Currency Investigation to enquire into the origin and general results in the relative value of gold and silver, the effects produced thereby upon the economy of Japan, "whether any change should be made in the present currency system of Japan, and if such change be considered necessary, what currency unit should be adopted." What this committee may report it is impossible to say; it may decide to recommend to discontinue the coinage of Japanese yen. In that case, we are of opinion that it would be most expedient to recommend the legalization of the Japanese yen in Hongkong at present, in view of the great uncertainties which exist in connection therewith.
From enquiries made of the Mint Master in London, it appears that his appliances, without costly additions, would not allow of his undertaking the coinage of a British dollar at all times, while the seignorage charged by the Mint authorities in Birmingham would be so costly, for the present, as to be practically prohibitive.
We are given to understand the Indian Government is prepared to coin a British dollar at the Bombay Mint, and that the charge for seignorage will be 1 per cent, or thereabouts.
Under the circumstances we are clearly of opinion that it is imperatively necessary in the interests of the trade of the colony, and otherwise, that immediate action should be taken in the direction of the coinage and legalization of a British dollar, equal in weight and fineness to the Mexican dollar, for circulation in the colony of Hongkong concurrently with the dollars which are now legal tender.
We are, dear sir, your most obedient servants,
J. J. KREW UK..
H. JACKSON.
N. CHATER.
J. HURBURN
T. H. WHITE HEAD.
RECEIVED
3995
6 MAR 34
Feb.