575
prevent the present issues being used in the
majority of private transactions, and even greater
confusion and paralyzation of trade than exist
at the present time would ensue.
12.
I regret that I can suggest no useful action
that can be taken by the Hongkong Government in this matter
beyond laying down the principle that they will not again
engage in the trade of supplying China with taken coins at
their face value, and beyond doing their utmost to persuade
the Cantonese authorities to restrict their production of
such coins.
You
13.
I also regret that I did not consider, as I
should have done, the whole question of the supply of sub-
sidiary coins to China before transmitting for Mr.Lyttel-
ton's approval in my despatch No.85 of the 24th.March,
13321
1905, a programme of proposed importations of subsidiary or
coin for that year. If I had fully thought over the matter,
in the same way as a short time previously I had had occa-
sion to consider a proposal that the Governments of the
West African Colonies should add to their revenues by tak-
ing the profits on and the responsibilities for a West
African token coinage. I should probably have seen the bear-
ing on the question of Hongkong subsidiary coinage of the
conclusion I then came to, viz:- that profits on a token
atTMTM
currency are illusory if one is prepared to redeem it any
time