- 14-
15
7746/07.
No. 14.
Copy of despatch from the Governor of Hongkong to H.M. Minister, Peking.
GOVERNMENT HOUES, HONGKONG, 19th October, 1909.
Sm-I have the honour to inquire what hope there is of any effective steps being taken in the near future by the Chinese Government to control the issue of subsidiary coinage by the Chinese Mints, and to put the currency on a proper basis.
2. In this connection I may inform Your Excellency that during the 3 years 1906-8 this Government has incurred an average annual loss of $184,204.00 in the demonetization of Hongkong sabeoins, which has been rendered necessary owing to their depreciation, as a result of the depreciated Chinese Currency which though not legal tender circulates in the Colony. The depreciation of the subsidiary coinage has seriously affected the business of nearly all the mercantile firms in the Colony.
3. A radical reform in the whole currency of China is of course greatly to be desired, but I recognise the magnitude of the task, and the inefficiency of the ineans for carrying it through. I would therefore desire to press the suggestion as a first step in the reform, that effective means should be taken for controlling the output of the Mints. I would suggest that the best way of doing this would consist in the prohibition of the coinage of any coins in a province wliere that coin is at the time circulating at a discount,-leaving the Provincial Mints free to issue new currency whenever any particular coin should reach par value. For this purpose all subcoin should be grouped as one currency.
ENCLOSURE 1 IN No. 15.
THE GRANGE, WELWYN, 13th October, 1909.
MY DEAR COX,-Some influential men in the City are concerned greatly owing to the continued use in Hongkong of Chinese subsidiary coin, which is not legal tender. The Electric Traction Company of Hongkong Limited suffers especially by the Public using that coin, for they cannot refuse taking it or they would lose a large volume of passenger traffic. It is felt that it is the duty of the Government to prevent the use of illegal coius in the Colony.
I was asked whether I could ascertain the attitude of the Colonial Office in the matter. An M.P. (Annan Bryce) thought a question had better be put in the House.
If the matter is under consideration, may I say so ?
Yours sincerely,
Private.
ENCLOSURE 2 x No. 15.
CECIL CLEMENTI SMITH.
HIS MAJESTY'S MINISTER, PEKING.
I have, &c.,
F. D. LUGARD, Governor, &c.
No. 15.
Copy of despatch from Secretary of State for Colonies to Governor of Hongkong.
HONGKONG. Confidential,
DOWNING STREET,
22nd October, 1909.
SIR,-With reference to the correspondence ending with my confidential despatch of the 27th November,* I have the honour to transmit to you, for your consideration, a copy of semi-official correspondence with Sir Cecil Smith, G.C.M.G., with regard to the use of Chinese subsidiary coin in Hongkong.
2. I should be glad if you would furnish me with a report on the present position of
the matter.
DOWNING STREET,
16th October, 1909.
DEAR SIR CECIL SMITH-I am answering your letter to Cox of the 13th instant, about Chinese subsidiary coin in Hongkong. The question is one of much difficulty, and great divergence of opinion exists locally as to the possibility of prohibiting their importa- tion and circulation, and as to the effect of such action on Hongkong trade with Canton.
We had much correspondence last year on the subject. The Governor endeavoured to come to an arrangement with the Viceroy for the cessation of the coinage until the coins reached face value, or at any rate for a severe restriction of coinage. According to our latest correspondence on this subject-in the middle of 1908-it appeared that the Viceroy had taken steps to restrict the small coinage, and promised to take further steps, if neces- We have heard nothing since, except that on October 5th of last year an Imperial Decree was issued ordaining au uniform coinage of taels and subsidiary coins for the Chinese Empire.
sary.
I gather from your letter that the supply of Chinese coins in Hongkong is again on the increase, and we will now ask the Governor for a report on the present position of the
matter.
We shall do all we can to remedy this nuisance but currency matters in Hongkong are very delicate and difficult, and questions in Parliament will not help us to solve them.
Yours sincerely,
A. E. COLLINS.
Governor
Sir F. D. LUGARD, K.C.M.G., C.B., D.S.O.,
$0.
Se..
I have, &c.,
$o.
* Not printed.
CREWE.
No. 16.
Copy of Memorandum from H.M. Minister, Peking, to the Waiwupu,
10th November, 1969.
Sir John Jordan has bad the honour to address communications to the Waiwupu on more than one occasion at the request of the Governor of Hongkong on the subject of the issue of subsidiary silver coinage by the Chinese Mints.
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