E
413
there must be, having regard to the total amount
coined. Is it not clear that if the Govt. of
H.. established a higher value for their sub-? sidiary coins in H. C., as compared with their
otherwise as they ware.
they
In course of time the subsidiary
coins of both countries would have risen again. To ex- }
clude Chinese coins from H.4. would have led China to
China
value in China, coins would come to H.1.
from
China, being replaced by Chinese subsidiary
coins of the same intrinsic value
wnion can
be turned out wholesale by the Canton Hint ?
As to the Govt. benefitting by the full rate
of
the discount, he means that they will buy
its face valus at a discount
A
M
up subsidiary coin and sell it for its silver
A
value at a loss without, as I think, doing
any good. As to withdrawing subsidiary coin paid into the Treas. and selling it as bullion
tha Gov. overlooks the fact that that process
only applied to the subsidiary coin which the
Govt. had to receive, under the lagal limit of
tender. Withdrawal would be quite sound, if it
Personally
still the wid Fed
J
Ewan of the La cuisin
produced any effect but in the ciros. it evidently Co.
does not.
exclude our subsidiary coins from China. It now appears
they
that they will probably do so in any case, and it will
either cone back to H.. or sell as bullion. We cannot
help, and the holders must lose. After all the loss
can only be about 9 or 10 per cent the difference
between coins 8*4:800 and 900 fine.
As to publication, 1.certainly would not allow the
publication of corresp. such a ticklish matter.
on
would reply that he should inform the Council that
Af
in her 2 of 10227]
in the opinion of H.M.G. the Cellony has ne-
ternatiTO
at present but to submit to the inconvenience of a
depreciated subsidiary currency, since any attempt to
cope with the difficulty would involve the Colony im
hazvy_arpenes without much prospect of any good-result.
And send copy of this and our reply to Treas.
We need not comment on the Cov.'s arguments in this
desp.
As to proceeding in co-operation with China,
our letter was written before we heard of the new
Currency scheme for China. Obviously the best solution would have been to get Canton to stop
giag subsidiary coins, and to leave matters
colating
a al
Lord Zucas
Dr. 15