It was reported by the Taotai of the Kowloon Customs, Wan, that the Chinese merchants in Hongkong were complaining that owing to the unsettled state of the currency in Canton, the banks in Hongkong were unwilling to advance money to them.
Taken in Hongkong. It naturally follows that the banks do not venture to advance money. This has had a bad effect on trade and many shops have had to give up business, and if nothing is done to put a stop to this practice, the position will assume a very serious aspect and the trade of Canton will be involved.
I beg to suggest that Your Excellency should appoint a Chinese Commercial Agent in Hongkong whose duty it shall be to look after the interests of Chinese trade but who shall not interfere in any way with the administration of the Hongkong Government. He should have as advisers several of the wealthy merchants of experience selected from the various guilds. These men should be appointed by Your Excellency on the recommendation of the Chinese Commercial Agent.
It shall be the duty of the Agent to inquire into the state of trade and consider how it can be improved; he shall report to Your Excellency from time to time on the value of gold and silver and on the price of different commodities so as to supplement the information given to Your Excellency by the Bureau of Agriculture, Manufacture and Commerce of Canton. If a Hongkong Merchant wishes to extend his trade to the interior, it shall be the duty of the Agent to encourage him and give him the necessary assistance.
Should one abscond to his native country with a large sum of money in his possession, he should report same to the Viceroy and strict measures should be adopted to inquire into the case. Thus a thorough understanding between the officials and merchants will be arrived at. Not only will the Chinese trade be improved considerably, but indirectly the Chinese Government will regain the power of protecting Chinese merchants abroad. As to the details I will make a further report at some future date.
Since then Taotai Wan has sent a report to the effect that he has discussed the matter contained in the above report with several merchants and it was their opinion that the proposals were sound. He thinks that some preparations should be made to meet the expenses involved. In Hongkong there is...