25
9
of
tender in Hong Kong and both the dollar and the fractional coinage appear to circulate on a par with one another though of different fineness. According to the Kemmerer Commission the dollar, but not the fractional coinage, also circulates
also circulates invarious parts China, sometimes as a "dollar" and sometimes merely as silver bullion being regarded as worth simply its silver content. Dollars circulating outside Hong Kong are frequently "chopped" i.e. punch-marked with Chinese characters indicating weight or fineness, "chop" being Cantonese for "a seal"7
Notes are not legal tender, but circulate
freely and by preference both in Hong Kong and over vide areas in Southern China.
Until October last year every account rendered and every scale of charges, even those imposed by the Government, was by convention regarded as being expressed in dollars in bark-notes, notes being
available in dekorinations from one dollar upwards.
The
Coin was accepted only for small amounts or, if for larger amounts, at a discount i.e. notes stood at a premium. The reason for this premium was of course the convention just mentioned, and the reason for this convention in its turn was the greater convenience of the note. amount of the note premium has varied with the demand for notes, increasing when the demand is strong. As the demand generally comes from the banks and is at its strongest when the Banks are "overbought in sterling",
as