CO129-331 - Public Offices - 1905 — Page 288

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Mr. Fiddes

The F.0. are urging on the China Government the fulfil-

aent of their obligation under their recent Treaty with us and

with other powers to introduce in China a uniform national

coinage and at the same time they urge on us the re-establish-

ment of a Mint at Hong Kong to coin dollars for oirculation in

China. At first sight there is an inconsistency, but as the

chance of China establishing an uniform coinage is extremely

remote, we can consider their representation to us on its merits.

A Mint was established at H.Kong in 1864, and it coined the

old Hong Kong dollar, which has now disappeared from view, at

a seigniorage of 2 per cent. The Mint did not pay, and it was

closed in 1883.

We issued no other coin on a silver basis till 1894,

when as a result of Lord Herschell's Committee's recommendation

we arranged for the coinage of the British dollar at the Indian

Mints. See print, Eastern 62, attached.

The Indian Mints then agreed to coin dollars at a seig-

niorage of 1 per cent, on the two Banks ( Chartered and H.. and

Jay the charge

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Shanghai) agreeing to at least 6 millions per annum.

That rate was very low, considering the article turned out,

which is by all accounts first rate. India could do it because

ber Mints were idle, the rupee coinage having ceased. But in

1905 when rupee coining had again become heavy the Govt. of In-

dia found that the rate didn't pay. Moreover the requirements of

the Banks were embarassing. They therefore gave notice of the

termaination of their agreement with the Banks, and it expired