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'COURSE OF EXCHANGE.
Silver. During the past year many fluctuations have taken place in this Metal from various causes, but principally in the action taken by the Americans in their attempts to make the Trade Dollar a legal tender, and their passing the "Bland Silver Bill." So far as China is concerned, during 1878, the country has not required to import Silver, this is acounted for in two ways; first, the import of Silver during 1870-77, was unusually heavy, and rendered any import during 1878 unnecessary; second, the value of all China produce during the whole of 1878, has been so low, that a very much smaller amount of money than usual, has been required to move the principal articles of export.
The depreciation in the value of Silk is fully 40%, and Tea has also fullen considerably in value; on the other hand the fall in the value of imports has not been to a corresponding extent, notably Opium, the average price of which has advanced considerably.
During 1876-77, Chios took large quantities of Silver from San Francisco for local consumption, and further, large quantities of Rupecs and Bar Silver were imported from India, a most unusual occurrence, and not likely to take place again for many years. During 1878, the few parcels of Bat Silver ordered for China from America, have all been forwarded to Indin, where Exchange, on the whole, has ruled higher than it has done in China, though even there a drop of nearly 18%, was at one time registered in 1878.
Dollars. American legislation has caused a demand to spring up here for Trade Dollars for shipment to America, where it appears they can be passed off in payment of custom dues, and all unchopped "Trades" that could be found here have been shipped for that purpose; consequently we are not likely to have any further importation of Trade Dollars in the future.
Clean Mexicans have not commanded the high premium they did in former years, for various rensons, but mainly on account of the great depression in the Silk trade, in fact during the whole of the year, the clean dollar has seldom been worth more than its equivalent in local Hongkong currency weighed @ 7:1.7; another reason for the assimilation of clean coin and currency, is the fact that almost the whole of the chopped coin has been shipped to India, and the Bank treasuries in Hongkong are mainly supplied with clean coin, whereas in years past, the contrary was the case. The drain of coin to India still continues, and it is probable that in future, clean coins will he more widely circulated, than they have been in the past.
The highest quoted rate of Exchange of the Dollar during 1878, was 8/103, in January, and the lowest 3/01 in December, the greatest fall having taken place after the mouth of August.
Treasury Office, Hongkong, 30th January, 1879.
J. MUSKETT, Captain, District Paymaster and Treasurer,
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, 1803, a copy of which was published in the Hongkong Government Gazette of the 2nd May, 1863, and such Currency, as hereinafter stated, was made a legal Tender throughout the Colony, from the 10th February, 1864, 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 Coius issued from Her Majesty's Mint, representing:
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(1.) One-fifth part of the said Dollar, and commonly called Twenty Cent Piece; (2.) One-tenth part of the said Dollar, and commonly called Ten Cent Piece; (3.) One-twentieth part of the said Dollar, 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, and (2) Que-thousandth part of the said Dollar, and commonly called Mil or Cash.
The Silver coins of Twenty, Ten, or Five Cents value are a legal Tender of payment for any sum Bot exceeding Two Dollars, and the Cents or Mils for any sum not exceeding One Dollar.
AMOUNT OF COIN IN CIRCULATION.
Approximate amount of Ilongkong Dollars and Half-Dollars struck at the Hongkong Mint,...$1,421,487.00 Approximate amount of Hongkong Silver and Copper Subsidiary Coins (20, 10 and 5 Cent
$ 355,981.00 Pieces; and 1 Cent and Mil Pieces) put into circulation up to 31st December, 1873,
Hongkong Silver Subsidiary Coins obtained from England in the year 1874, and subse- $ 48,000:00 quently issued,
Hongkong Silver and Copper Subsidiary Coins obtained from England in the years 1876,
1870, and 1877, and subsequently issued, deducting the amount in the Treasury on the 31st $ 225,805.00 December, 1876,
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It is impossible to state how many of the above Coins and of Coins of other denominations are in circulation, but the probability is that of the Hongkong Silver Coins there is not 10 per cent. of the total issud at the present time within the Colony.