527
41. The second possible source of new revenue is currency notes. It is desirable for many reasons to place
the currency system on a sound basis and it appears to me that this can be so affected as to provide a satisfactory
revenue,
The currency of Weihaiwei, apart from
subsidiary coin emell silver, copper cente and cash
-
consists of silver dollars, notes of the Shanghai iseues of
the Hongkong and Shanghai and Chartered Banks and "shop-
體
notes of the denomination of one dollar and one "tiao"
(= 1000 cash).
The important item for the present purpose
is these shop-notes, which are issued by various private firms. Those notes which are covered by the guarantee of the Port Edward Chinese Chamber of Commerce (see Enclosure 2 for the main rules governing the issue) are practically
equivalent to legal tender, being accepted by Goverment
in payment of dues. In addition to these guaranteed notes
(the value of which amounted in April last to 250,000 plus
Tiao 358,500) there are in circulation notes, probably of
at least an equal amount, issued under similar regulations under the auspices of the Chamber of Commerce of the Chinese city of Weihaiwei, and also unregistered and
unguaranteed private notes, of which it is impossible to give any estimate.
42. I suggest that the notes guaranteed by the
Port Edward Chamber should be made legal tender. This
would, of course, involve the assumption by the Government of responsibility for the notes, should the Chamber default, but I submit that the danger of this happening is negligible, (If necessary, the deposit to be made by the issuing shop might be increased or the ratio of notes permitted to be issued to the capital of the shop might be reduced).
Recognition of these notes as legal tender should be accompanied by prohibition of the use of the notes
guaranteed