Fac
sir,
574
Hong Kong 23rd March 1903.
In reply to your letter of 20th inst. I have to inform His Excllency that I consider a gold currency is de sirable for the welfare of the Colony, chiefly for the following
reasons
The production of silver is in excess of the demand and as silver is almost entirely a by-product of mine s working gold, copper, and other metals any fall in price, although it reduces the profit on these mines to some extext, does not limit the production.
This being the case silver may and will probably fall in a short time still further perhaps to a shilling an ounce or lower and possibly be quoted by the ton and ir such a fall takes place it cannot be for the good of the individual or for trade or for the Colony.
The present uncertainty as to the value or future of silver keeps capital away, whereas a sound and stable currency would bring capital into the Colony, and it is admitted that capital is required.
With every drop in silver we have to pay more for food and other necessaries of life and the cost of living increases for European and Chinese alike and as Siam and
have
the Philippines adopted a gold currency and the Straits Settlements and Frendh Indb China will probably follow suit the price of the principal article of food in this Colony, "rice", will considerably increase and entail a consequent advance in the cost of labor.
Pane, Private Secretary
T