A03190
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opinion this attitude on the part of the Government of India would not only result in great inconvenience to the trade of this Colony, but would be almost certain to lead at times to saricus contraction of currency, and on occasion might bring about a grave financial crisis. It is seldom possible to foresee actual require-
rents a long way ahead, and with the Hupse and the Straits new dollar having priority, it is readily conceivable that sliver bullion deposited in the Indian kints for coinage into british Dollars might be subject to indefinite delay at a time when coin was urgently required in Hong-
Kong.
1 zov tol ne!
It is true the Mexican doller is also legal tender by weight of Tueis 717 = 1,000 Hongkong doliers and it is quite possible it may be available in sufficient quantity for some time, but its supply is governed by the balance of trade in Mexico and experience has proved that it cannot be relied on with any degree of certainty. Moreover the Government of Mexico are at present considering the question of changing the basis of their currency, and it this should be carried out the coinage of the present Vexican doller will cease, so
that it is not safe to depend on renet from that quarter.
In view of the fact that this Colony is entirely
trust you
dependent on outside sources for its supply of currency, may be able to make such representations to the Government of lodia as may lead them to reconsider their intention of giving priority to both India and the Straits, in order that Sliver deposited for coinage into British Dollars may continue to be #inted within reasonable time, and (also to appeal to them to modify their present proposal to double the seignorage.
Ae venture to think that this small concession
c the needs of this Colony will not greatly inconvenience the Indian Fints as owing to the demonetization of the British dollar in the traits, the amount of Silver deposited for coinage is not likely to be
on