33
Minute by lir Burnes, Colonial Secretary, dated 28th, October.1911
I entirely agree. I should like to mention
a further difficulty in the way of suddenly demonetising
the whole currency. The wealthier and more educated
classes will have earlier information of the Govermont's
intention than will the coolies, or at least they will
more early appreciate it: the result will be that when
the prohibition of the circulation of the demonetised
coin becomes effective it will be found that the greater
part of it is in the hands of the poorest classes upon
whom the major part of the cost of re-establishing the
currency will thus be placed. The unfairness and unwisdom
of bringing about such a state of things is obvious.
2.
I would add that no prohibition of the
circulation of demonetised coins will be Sffective without
a very large number of police-court prosecutions and
heavy fines. The Chinese are so accustomed to carrying
on business with two or three currencies of varying
value that they will not hesitate to accept the demone-
tised coin freely at a discount unless they are
forcibly prevented from, doing so.
(intd(x) W.B.
28.10.11