C.O.
3372299
19 SEP 36 Extracts from a letter dated 30th May, 1905, from J.G. Peter, HongKong and Shanghai Bank, Hong-
Kong, to Mr. Hilller.
British dollars, as you know, are greatly in
favour in North China, while in Shanghai and the
Yangtse Valley the Chinese still demand payment in
old Mexican dollars. I may however remind you
that both British and Mexican dollars are legal ten-
der in this Colony, so naturally the cheaper coin
of the two is the one that will find its way to this
market.
Under the arrangement made in 1894, the Indian
Government undertook to coin British dollars at a
seigniorage charge of 1%, and we, jointly with the
Chartered Bank, agreed to take from them a minimum
coinage of 5,000,000 dollars annually; but in 1903
the Indian Government notified us that they wished
to terminate the agreement then in force, but that
they were willing to continue to coin British dol-
lars at a seigniorage charge of 2%, subject to their
own minting requirements taking precedence of Bri-
tish dollars.
At