15
value, but are imposing some kind of sur-tax
which fluctuates with the market price of
silver.
There is no doubt that the idea of
a gold basis currency has been considered in
China, but the general opinion of people with
a knowledge of the China trade appears to be
that a revolution of this kind in the currency
arrangements of China is a very long way off.
TZ.V. Vernon
18.2.30
Mr: Vernon.
( ↑ shəaid much a reciate an
oportunity of talking this matter over with you,
at your convenience.)
I do not think that anything need be-or can be-
done at present, except possibly to get th exact
facts as to the Hong Kong currency arrangts:
collated. They seem to be wropped in mystery
to a surprising extent. Even a quite well-informed
article in a local paper sugtests that no one
+
knows recisely what the position is.
A
Any suggestion for a change in system would, T
imagine, have to come from the local adminis-
tration which may possibly for this purpose be
muck the same as the three note-issuing Banks )
and from the Banks primarily interested.
A priori--I have no knowledge of local conditions-
one would think that Hong Kong would find its
advantage in remaining on a silver basis, SO
long as China was on a silver basis, and it
seems to me that it would be dangerous for us