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were payment for almost all produce (silk, tea,
cassia etc ete) is made by the foreign merchants
in Canton to the native dealers by cheques drawn
on Hongkong.
These cheque are usually soldi at a premiumE
varying from 1% to 2%. The present price being
nearly 14%.
These cheques serve as remittances to Hong-
-Kong to be used chiefly in the purchase of
imports -- thus saving the risk and expense of a
constant trmsfer of coin or sycee between the
two ports.
It is obvious that the advantage to trade
which is now secured through the cheque system
would at once disappear if all accounts in Hong-
-kong were kept in sterling, a currency of which
the native dealer in China has no knowledge or
use.
I think the above tenis to prove that the
adoption of a Gold currency
ratio between silver and gold
a fixed
or
off a
must in the end
lead to a decentralization of trade, adversely
affecting the prosperity of Hongkong, business; -
which now centres here being transferred to
other ports. It may be argued that such a
transfer will not affect the volume or prosperity
of British trade with South China this may be
perfectly true but what we have now to consider
is the prosperity and advancement of Hongkong.
Decentralization of trade must in the long
rum result in a lessening of the population and
consequently to a decrease in the value of our