COPY.
Enclosure 2.
Government House,
Hongkong, 30th April, 1907.
Sir,
I have the honour to acknowledge your letter of the 22nd March informing me that in a conversation you had with the Viceroy on that date, His Excellency expressed his dissatisfaction at the reckless way in which subsidiary coins had been minted by the Provincial Mint and his intention not to allow any further manufacture of these coins for a period of 3 months so that time be allowed for investigation.
2. The decision to which His Excellency has come in this important matter affords me much satisfaction especially as I am convinced that the result of the Viceroy's investigation will be that the period for which the Canton Mint is to be closed for the manufacture of subsidiary coins will be extended until those that have already been opened become re-habilitated by more extended distribution and partial absorption. Undoubtedly the time when the subsidiary coins will no longer be at a discount is, owing to the vast stocks that have been put in circulation, remote but if further supplies from any source are rigidly excluded from the Two Kwang Provinces there is equally little doubt that this time must arrive.
3. As His Excellency is aware it is only rather more than a year ago that the value of subsidiary coins in relation to dollars began to fall heavily. Previous to that time, subsidiary coin, mainly imported from Hongkong, had been limited to what was required to meet the natural demands of the Provinces for ...
Britannic Majesty's Consul-General,
Canton.