The currency of the Colony consists, in addition to the notes of these Banks, of British, Hongkong, and Mexican Dollars and of subsidiary coin.
Foreign note circulation has wholly ceased.
The rate of discount on Hongkong subsidiary coin, as compared with notes, varied during 1914 between the following limits :-
50 cent-pieces 14 per cent. to 13 per cent. 20 cent-pieces ... 10 cent-pieces ... 5 cent-pieces 21 per cent. 2 cent-pieces 22 1/2 per cent. Copper coin ...Compared however with the Mexican Dollar which is the standard of the Colony the variations were as follows:-
50 cent-pieces 1 per cent. to 34 per cent. 20 cent-pieces ... 10 cent-pieces 55 per cent. 5 cent-pieces ... 2 cent-pieces 21 per cent. Copper coin 7 per cent. to 83 per cent.It will be seen therefore that Bank notes were at a premium varying from par (in January) to 10 per cent. (in December).
The total issue of these coins, less those demonetized, now amounts to $31,392,720 nominal value, and they were up to the year 1905 readily absorbed at par, large quantities being taken by the neighbouring provinces of China. During 1914 ten cent pieces of the face value of $5,000,000 were shipped to England for purposes of demonetization. The discount which has prevailed since 1905 may be attributed to the immense quantity of similar coin which has latterly been minted at Canton as well as to the amount of Hongkong coin minted largely in excess of the needs of the Colony by itself. In 1905 the Hongkong Government ceased to issue any subsidiary coin and in 1906 it began a policy of demonetising all its subsidiary coin received as revenue. This policy has been continuously followed since except during a brief period in 1911. Coin to the face value of $12,607,459 has thus been redeemed. The total issue by the Hongkong Government was of the face value of about $44,000,000. It is thought that half of that amount has dropped out of circulation.
Ordinance No. 15 of 1913, which was passed to prohibit the circulation of foreign silver coin, came into force on 1st March.