Your Highness,
On July 9th, this Legation addressed a note to the Board, drawing attention to the unsatisfactory condition of the coinage in the Canton Province, owing to the unrestricted issue by the Provincial Authorities of subsidiary coins, and Mr. Carnegie was shortly afterwards verbally informed by the Tai Wu Pu that a telegram on the subject had been sent to the Viceroy at Canton.
The question is one which affects not only the Two Kuang Provinces but also Hongkong, and the efforts which have been made by the British Authorities to remedy the evil seem destined to be ineffectual without the cooperation of the Chinese Authorities at Canton.
In 1900 the Hongkong Government not only stopped the import of subsidiary coins when they began to fall to a discount, and it became obvious that the number of such coins exceeded the amount required for currency purposes, but sent further and shipped back to England $396,000 worth of Hongkong subsidiary coins to be melted and sold as bullion, at considerable loss.
Since that date all subsidiary coins received by Government as payment of Revenue, amounting to some $360,000 worth per annum, have been withdrawn from circulation
To His Highness Prince Ch'ing.