253
248
In view of these facts I am of opinion that
the quantity of Hongkong coin which would flow suddenly into the Colony if prohibition of Chinese coins were resorted to would not be large, and that the problem of rehabilitating the subsidiary coinage of this Colony is a much simpler one than it has hitherto been regarded.
8.
It is even possible that it may be solved with- -out prohibition by discrediting the Chinese coins. With this object in view I have on the suggestion of the Chief Manager of the Hongkong and Shanghai Banking Corporation persuaded the Low Level Tramway Company, the High Level Tramway Company, and the Star Ferry Company, who are the principal sufferers among European institutions from the discount on subsidiary coins, of which they receive large quantities daily in fares, to decline to accept
Chinese coins.
This they have consented to do on my urgent representations that they should assist the Government in its efforts to restore the Hongkong coins to par.
dosure 2.
27707
The innovation was begun on Monday the 18th. instant. Precautions were taken by the Police to deal with any attempts at resentment by the population at the refusal of Canton coins. No difficulty occurred and I am glad to say that other establishments are following the example of the 3 Companies mentioned. I enclose an extract from a local newspaper on the sub- -ject.
9.
The moment is peculiarly opportune for this action and even for the more decided step of prohibition: for since
I wrote my Despatch of the 2nd. of August the Canton Government
has prohibited the export of their silver coins nominally on the
plea of their scarcity but in reality in order to force the use
of their notes in the Province and in this Colony. They cannot
therefore take exception to the action of this Government if it
proceeded to co-operate with them by prohibiting the circulation
of their coins in the Colony.
10.
I shall report further to you the effect of