CONFIDENTIAL.
Sir,
Cam
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16120
Rr12 MAY 13
GOVERNMENT HOUSE.
HONGKONG. 17th. April, 1913.
369
With reference to my Despatch Confidential of
the 11th. of last January, I have the honour to transmit for your information- the enclosed table showing the average rate of dis- -count on subsidiary coinage, both Hongkong and Cantonese obtaining in the month of April for each year since 1907 which was shortly after the policy of demonetization of the surplus issue was com-
-menced.
The discount varies during the year but such variations are subject to rule depending on the movements of crops and other regular fluctuations of trade, so that a comparison of the
average rate for any one month in the year with that for the same
month of another year affords a fairly accurate indication of the
effect of any measures taken.
It may therefore be assumed on a perusal of the
figures in the table that the result, in general, of the policy of
demonetization has been to enhance the nominal value of the Hong-
-kong coinage especially when it is borne in mind that the Canton
Mint has, from time to time during the period under review, issued
fresh supplies of its so-called subsidiary coin almost entirely in
10 and 20 cent pieces and it would also I think be fair to infer
that the slight increase in the discount for this year over that
HE RIGHT HONOURABLE
LEWIS HARCOURT, M.P.,
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