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RECO REGE 14 JAN!!
Enclosure/in Sir John Jordan's N6 455 of December 15, 1910. 6 JAN 1911
Sir a F.May, Hongkong, to H.M.Chargé d'Affaires, Peking.
October 24, 1910.
sir,
With reference to Your Excellency's despatch of June 3 to Sir R.Grey, in which you stated that "the minting of all coins now in circulation was to cease from the publication of the Regulations" for the reform of the currency recently issued by the Board of Finance, I have the honour to bring to Your Excellenoy's notice that it is reported to me by H.B.M.Consul General at Canton, in reply to my enquiries on the subject, that the Canton Mint has temporarily resumed the coinage of 20 cent pieces on the 18th instant. It is stated in the public press that this step is in relief of the money market in which there is much stringency owing to the financial crisis in Canton From the enclosed translation of what purports to be a notification by the Provincial Treasurer it would appear that the true reason probably is that the reserves of the Ta Ch'ing (Government Bank) are not deemed sufficient to meet a possible run upon it.
But whatever the true reason is I would ask you to be mood enough to move the Chinese Government to suspend the permission at the earliest possible moment in the interests of the already depreciated silver coinage of the Province which will he fur- ther depreciated by any fresh issues of coin.
2. The financial crisis at present existing is, as Your Fxcellency is no doubt aware, largely due to the issue of Bank notes by private Chinese Banks without proper security for their redemption in defiance of the Regulations issued by the Ministry of Finance with the sanction of the Chinese Government on July 29, 1909. The following private Chinese Banks have to my know-
ledge