Appendix.
1.
29
The cost of minting in London and bringing British
dollars to Hong Kong is at present
Brokerage in London
•125%
Freight
•625
Insurance
125
Wharf dues and sundries
125
Seigniorage
Interest
2.
5
3.5%
2.
The silver parity of the British dollar may be found
from the following chain rule formula
? pence
1 British
480 grains
925 fineness
=
1 British dollar
415 985 grains
Ounce
London
900 fineness Hong Kong dollars
1 Ounce
Constant is 343212
London price of standard silver
The price of standard silver in London on 16th
December 1926 was 24 13/16 and the silver parity of the British
dollar on the above formula was 20.922 pence.
The exchange market rate for Hong Kong currency on
17th December was 23.75 pence (1/114) a premium of 13.5% over its
silver parity.