COPY
OF
CORRESPONDENCE BETWEEN THE SECRETARY OF STATE FOR THE COLONIES AND THE GOVERNOR OF HONG KONG
UPON THE SUBJECT OF
THE CURRENCY OF THE COLONY.
No.
Date.
3d November 1860 -
2
9th March 1861
-
Governor Sir H. Robinson
8
26th March 1862
Enclosure No. 1
From
To.
His Grace the Duke of Newcastle Governor Sir H. Robinson
Page.
·
3
-
His Grace the Duke of Newcastle
4
SI,
Enclosure No. 2
-
Enclosure No. 8
-
4
9th May 1862 -
5
26th May 1862
-
His Grace the Duke of Newcastle The Right Hon. F. Peel
The Master of the Mint Sir F. Rogers
Governor Sir H. Robinson -
Governor Sir H. Robinson.
Colonial Secretary
Mr. Hamilton
His Grace the Duke of Newcastle
His Grace the Duke of Newcastle
Governor Sir H. Robinson
11
Sir F. Rogers
12
Mr. Hamilton -
12
-
15
16
16
2222 * *
Enclosure No. 1
Enclosure No. 2 Enclosure No. 8
Chairman of the Chamber of Com-
merce.
18
Sir H. Robinson
•
Chamber of Commerce
19
Chamber of Commerce
Sir H. Robinson
19
Enclosure No. 4
-
Mr. J. J. Mackenzie -
Sir H. Robinson
20
6
24th January 1863 -
His Grace the Duke of Newcastle
The Acting Governor of Hong
21
Kong.
Enclosure No. 1
(Order in Council)
Enclosure No. 2
(Draft Proclamation)
22
28
22
No. 1.
Copy of DESPATCH from the Duke of NEWCASTle, K.G., to Governor Sir H. ROBINSON.
October 25, 1858.
Downing Street, November 3, 1860. You are aware that the subject of the currency of Hong Kong has long attracted Sir E. B. Lytton to Sir J. Bowring, the attention of Her Majesty's Government. The Des- patches referred to in the margin will place you in Sir J. Bowring to Sir E. B. Lytton. possession of what has passed upon the subject. At the present moment it is not thought advisable to adopt any new regulations which might have the effect of disturbing the arrangements for paying the troops, at a time when, from their movements in a country, the monetary principles of which are uncertain and anomalous, new complications may arise which might be more difficult to adjust, if the colonial basis of Government accounts were altered.
The necessity, however, for alteration is fully admitted. It appears desirable (1), that Government accounts should be eventually kept in dollars and cents, and not in sovereigns and shillings; (2), that silver alone, and not gold, or gold and silver concurrently, should be the legal tender at Hong Kong.
You perceive that under these circumstances it has been proposed that the existing Proclamation which fixes the values of coins at Hong Kong shall be withdrawn, and that the dollar shall be declared to be the only legal tender, all other coins being left to find their own value.
But two questions remain to be settled :-first, what coin is to be a legal tender in payment of sums less than one dollar; and, secondly, whether any, and, if so, what provision is made for the indemnification of persons who are in possession of sovereigns at the moment when they are demonetized, or who are subject to obligations which, before the revocation of the existing Proclamation, might be discharged either in gold or silver, but after that revocation will only be dischargeable in silver, and therefore comparatively at a loss.
On the first point various suggestions have been made, of which I will only now notice two. It has been suggested that the new Proclamation should declare Chinese cash of a certain quality to be a legal tender up to a certain amount (say 3 dollars), at the rate of (say) 1,200 cash per dollar.
It has been also suggested that a silver and copper coinage representing subdivisions of a dollar (like the shilling in England) should be a legal tender for small pay- ments, at a rate slightly above their intrinsic value. With regard to the first of these suggestions, I am informed that domestic accounts between Europeans and Chinese are usually kept in cash, and settled in dollars; that the relative value of these two coinages is a fluctuating one; that the rate at which, in settling a bill, cash shall be converted into dollars, is a constant subject of bargain or arrangement. Hence it is observed, that a law which determined the relative value of these coins in small payments, might in practice be considered to determine it in large transactions, and might thus give a certain indirect advantage in the settlement of their accounts either to Chinese sellers or to European purchasers.
But I need hardly point out that your own advice on this head should be given with the object of settling the colonial currency on a footing of permanent convenience, and A 2
PUBLIC RECORD OFFICE
Reference :--
C.O.882
2 PUBLIC RECORD OFFICE, LONDON
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