142
6
should be fairly assessed, and that they should not be subjected to annoyance at the bands of the Russian police. It is quite apparent to them that no trade of any real importance could exist in face of opposition by the railway company, and if left to themselves, I was led to believe they would voluntarily pay the taxes demanded in preference to meeting obstacles in the delivery and shipment of their merchandise. That this policy is adopted by the railway company with the view of bringing recalcitrants to their bearings I have every reason to believe.
I have, &c.
[This Document is the Property of His Britannic Majesty's Governinant] O
AFFAIRS OF CHINA.
CONFIDENTIAL.
ROBERT WILLIS.
[765]
No. 1.
3502
RECP
RFC 3 FEB 10
[January 8.1
SECTION 1.
(No. 425.) Sir,
Sir J. Jordan to Sir Edward Grey.-(Received January 8, 1910.)
Peking, November 17, 1909. YOU will have observed from the Wai-wu Pu's memorandum of the 23rd February, enclosed in my despatch No. 142 of the 1st April last, that I had approached the Chinese Government at the request of the Governor of Hong Kong, who was anxious to learn whether any steps were being taken to restrict the output of subsidiary coinage by the provincial mint at Canton.
I now have the honour to transmit to you herewith copy of a memorandum which I have addressed to the Wai-wu Pu on the same subject on receipt of a despatch from Sir Frederick Lugard, in which, after pointing out the harm caused to commercial interests in the colony by the depreciation of the Chinese subsidiary coinage, he suggests as a means for controlling the output of the provincial mints the prohibition of the issue of coins now circulating at a discount, the mints to be only permitted to issue new currency whenever any particular coin shall have reached par value.
This suggestion seems to me of some value, and I have therefore recommended it to the Chinese Government for their favourable consideration.
I have, &c.
J. N. JORDAN.
Inclosure in No. 1.
Memorandum communicated to Wai-wu Pu by Sir J. Jordan.
SIR JOHN JORDAN has had the honour to address communications to the Wai-wu Pa on more than one occasion at the request of the Governor of Hong Kong on the subject of the issue of subsidiary silver coinage by the Chinese mints.
His Excellency the Governor of Hong Kong now writes to inform him that during the three years 1906-1908 the colony has incurred an average annual loss of 184,20 dollars in the demonetization of Hong Kong small coins as a result of the depreciated Chinese currency, which, though not legal tender, circulates in Hong Kong; and that the depreciation of the subsidiary coinage has seriously affected the business of nearly all the mercantile firns in the colony, flis Excellency suggests, as the most effective means under existing circumstances for controlling the output of the Chinese mints, the prohibition of the coinage of any coins in a province where such coins are circulating at a discount, leaving the provincial mints free to issue new currency whenever any particular coin reaches par value. For this purpose all subsidiary coinage should be grouped as one currency.
Sir John Jordan is convinced that the Chinese Government are desirous of remedying the evils of the existing depreciation of silver coins in many parts of China, and he has the honour to request that the suggestion of the Governor of Hong Kong may be taken into favourable consideration.
J. N. JORDAN.
Peking, November 10, 1909.
[2605 k-1]