At that time the Chartered Bank and ourselves
addressed a joint letter to the Colonial Secretary
of the HongKong Government, as per copy enclosed,
pointing out the great inconvenience to the trade
of the Colony that would result from the action of
the Indian Government, and we also asked them to
appeal to the Indian Government to modify their pro-
posal to double the seigniorage, but they did not
see their way to alter the decision they had already
arrived at, and there the matter has rested.
Since the termination of the old agreement very
few British dollars have been coined, such currency
as has been required have been filled by importation
of Mexican dollars; but there is every likelihood
that supplies of the Mexican dollar, as we know it,
will cease in time, as under recent legislation the
Mexican Government have stopped the return of dol-
lars into Mexico, and it is understood that they
will discontinue the coinage of them even for export,
but they are still prepared to accept offers for coins
on hand. What those supplies are we do not know,
300
or how long they will last, but there is a movement
on foot for the Mexican Government to coin a special
trade dollar for export alone, but so far as its use
in this Colony is concerned much will depend on how
its paying down cost will compare with the British
dollar; they have not stated what charge they will
make, but if they mint it cheaper, and other charges
(freight, time etc) being equal, we are bound to buy
in the cheapest market, and would be compelled to
make use of their services instead of those of the
Indian Government.
It would certainly seem a pity from a political
point of view, for obviously the circulation of the
British dollar would help indirectly to increase
the prestige of Great Britain, and it will be a
convincing proof to the Chinese of the predominant
influence of her trade in the Far East.
or