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COURSE OF EXCHANGE.
During the first eight months of the year 1879, there was nothing in the course of Exchange with the United Kingdom to call for any special remark, although the rates for sellers were higher than during the corresponding period in 1871. At the commenceulent of the year, rates were as follow: Bills at sight at 43, at thirty days at 1/4 to 4/15, and at six months at 451; three months later, Bills at sight at 4/4, and thirty days at 4/48, and at six months at 4/5; by the middle of the year rates were higher, Bills at sight at 45, at thirty days at 4/5§, and at six months at 46. By September, rates had risen considerably, although the Tea Beason was so far advanced, and during the following two or three weeks (to quote the Exchange Circular issued by one of the leading Brokers) there was, a constantly increasing strain upon the cash resources of Bankers, more severe thing any experienced for many years." At that time, Bills at sight reached 4/5 to 4/6; at thirty days 4/04 to 4/7, and at six months 47 to 48. This unusual state of things was ascribed to two causes, one being the great scarcity of Dollars in England fo shipment here, and the other the heavy demands made upon the various ports of China for specie to forward to Peking in anticipation of the marriage of the Emperor of China. Shortly after, considerable shipments of Coin arrived; these caused the rates again to recede, so that by the close of the year, quotations were for Bills at sight 4/32, at thirty days 4/41, and at six months at 45 to 454. During the past year Bills were drawn upon the Lords Commissioners of Her Majesty's Treasury by this Department, as under, viz. :-
In April to the extent of £100,000.0.0 at 4/41.
In October to the extent of £ 76,181.1.8 at 4'6 to 4/04. In December to the extent of £ 54,000.0.0 at 4/12 to 4/11.
No Bills have been drawn upon the Governor General of India throughout the year.-Dollars from England have been from time to time received.
C. K. CLEEVE,
Assistant Controller,
COINS.
The Currency of the Colony is now regulated by the Queen's Proclamation issued under Her Majesty's Order in Council of the 9th January, 1863, a copy of which was published in the Hongkong Government Gazette of the 2nd May, 1863, and stichi Currency, as hereinafter stated, was made a legal Tender throughout the Colony, from the 16th February, 1861, as proclaimed in the Gazette of the 23rd January of the same year.
The above Currency consists of the following Coins, viz. :—
1. The Dollar of Mexico.
2. The Hongkong Dollar and Half-Dollar issued from Her Majesty's Mint.
3. Silver Coins issued from Her Majesty's Mint, representing:-
(1.) One-fifth part of the said Dollar, and cominonly called "Twenty Cent Piece." (2.) One-tentli part of the said Dollar, and commonly called "Ten Cent Piece,"-and (3.) One-twentieth part of the said Dollar, and commonly called "Five Cent Piece."
4. Copper or Bronze Coins, also issued from Her Majesty's Mint, representing:
(1.) One-hundredth part of the said Dollar, and commonly called "One Cent Piece," and (2.) One-thousandth part of the said Dollar, and commonly called “Mil” or
Cash."
The Silver or "Tea Cent Pieces," and "Five Cent Pieces," are a legal Tender of payment for any sum not exceeding Two Dollars, and the "Cent Pieces or Mils" for any sum not exceeding One Dollar.
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The only coins that can be said to be current in Hongkong, as all others are at a discount, are the Mexican Dollar of the old and new dies, and the Hongkong Dollar with its subsidiary coin-the Twenty, Ten, and Five Cent Silver Pieces, and Copper Cents. Since the last Report, immense numbers of Mexican Dollars of the new die have been imported, and are now freely in circulation here, and recognized at Canton as fully equivaleut to the old die coin in value. Under instrutions from The Lords Commissioners of Her Majesty's Treasury, this Department made arrangements in March last with Her Majesty's Consul at Canton,-SIR B. HOBERTSON in conjunction with the Chinese Authorities there, for an Assay to be made of the new die coin, the results of which prove most satisfactorily that it is 14 per cent better than the old die coin. The Proceedings of this Assay appeared in the Government Gazette of the 7th of December last. In order to test the accuracy of the Assay named above, the Manager of the Oriental Bank here was applied to, and requested to aid us in obtaining correct results; an Assay carried out under his orders by European Assayists shewed a difference of only 16 part of a Dollar between the two. The whole of the Proceedings were forwarded to England for subsequent transmission to Prince Kung, with a view to the ultimate introduction throughout China of the new die coin. A Proclamation from the Chinese Authorities at Canton has made the coin current there. At present it is Dot accepted in any other part of China, and, owing to the increasing scarcity of the old die, it has become at times very difficult to meet demands for that class of coin; it has indeed, throughout the year, commanded a high premium; this Department has paid for clean Shanghai Dollars as much as eight per cent premium, and even the coin of the old die that is not deemed good enough for the Northern Ports, commands à considerable preminu. The prejudices of the Chinese are so strong against the introduction of the coin, that it is not probable even with the assistance of the Imperial Government at Peking it will be current throughout China for a lengthened period, probably not until the old die is so completely exhausted that the Natives are forced to accept the new,
AMOUNT OF COIN IN CIRCULATION.
Approximate Amount of Hongkong Dollars and Half-Dollars, . - - - - Approximate Amount of Hongkong Subsidiary Coins,
C. K. CLEEVE,
Assistant Controller,
.$1,421,487.50 245,681.03
Of Spanish and South American Dollars, or Gold and Silver Coins of other denominations, it is impossible, evon by approximation, to ascertain the actual amount in Circulation.