- 3
502-
7.
There is no doubt that the problem is greatly exercising public opinion in the Colony at the present time, and it presents itself in two main aspects:-
(i)
(ii)
8.
The premium of the note over silver.
This, in the opinion of the writers of the memoranda submitted by the Treasurer, is an evil which ought to be remedied, though the remedy might result in a further fall in the exchange until the notes are on a parity with silver. Opinions differ as to how this parity should be achieved.
The depreciated value of the Hong Kong dollar which is already causing an appreciable rise
in the cost of living in the Colony.
I have received notice of the following question to be asked at the next meeting of the Legislative Council:-
"In view of the serious and continued fall in the
price of silver, and consequent effect on exchange, and on the trade of the Colony, will the Government promtely appoint a local Committee composed of Merchants, Bankers and Exchange Brokers to study the whole question or in the alternative obtain the
service of a financial expert from Home, or take
such other, and if so, what, steps to meet the situation ?".
The problem is one of great difficulty complicated as it is by the chaos in China which hampers trade, and by the drop in the value of silver to an unprecedented level. I discussed
the