!
We shoul? have to
follow suit & H.K
for putting Chinese currency on a gold basis materializes.
In this connexion it must be remembered that the U.S.A. are
keen on a gold scheme for China, and under their pressure
and guidance it is not unlikely that such a scheme will be
carried out in the not remote future, whatever the Govt. of
China may be.
For this reason I would confine the note issue to the
limits of the problem presented by the redundant subsidiary
coinage, and I would not issue any notes on the demand of the
public, but simply for the convenience of the Govt.
My scheme is to take from the Banks their stocks of subsi-
diary coinage at prices to be fixed on the basis of current
depreciation from time to time. This depreciation will get
smaller as the scheme proceeds.
For the first block we take from the Ranks we agree to
pay a price which I will call x.
Of this block sufficient silver should be sent to India to
coin sota standard dollars equal to two thirds of x. The rest
of the silver should be sold and after paying expenses of re-
coinage and of note issue expenses the balance should be inves-
ted at home by the C.A.
When the newly coined dollars arrive at H.K. the Govt.
in
24