PUBLIC RECORD OFFICE
Reference:
TPELLIC.O.882
| | | | | | | | | | | | | |
2 PUBLIC RECORD OFFICE, LONDON
ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHICA | COPYRIGHT PHOTOGRAPH—NOT TO!
Inclosure N°3 in Despatch Confidential of 9th March, 1861.
SONG KONDAY
ONE GASH
香门港
香港
一文
Thave Characters are written in large size to show the exact, form? _
DRAWING OF THE PROPOSED
CENT AND TEN CENT PIECE.
Inclosure N°4 in Despatch Confidential of 9th March, 1861.
香港
TEN
CENTS
香港
香
仙◎
*
1220
· 毫
These Characters are written in large size to show the wast forms?,
9.
chiefly among Europeans, would be a matter of much consequence, so long as they were below their rated value to an extent that would cover the expense of their coinage, and insure their remaining in circulation. The quality and weight of the cent might be the same as that of the East India Company's cent coined in 1845, a few of which are in circulation, and which in size and weight is found to be a convenient coin. As regards the weight of the ten-cent piece, the Chinese authorities whom I have consulted consider it desirable that it should be made by means of alloy as nearly as possible one-tenth of the dollar in weight or 416 grains. I agree in this opinion, but as the English sixpence weighs only 44 grains, the ten-cent piece would require more alloy than the English standard.
No. 4.
24. I enclose drawings of the cent and ten-cent piece showing Drawing of cent and ten- what I consider would be appropriate inscriptions for each cent piece.
in English and Chinese. I would suggest that the Colonial Government should only make use of these coins in the same way as the cash in the payment of sums below a dollar, and that they be sold to the public at the treasury only in exchange for dollars; and I consider that the limitation of their quantity, and the limited amount for which they will be a legal tender, will ensure their passing current at all times at the rate assigned to them by law.
25. These coins, like the cash, should for the same reasons be manufactured in England, and the following quantity of each would be required to commence with,
viz. :-
1,000,000 cents
100,000 ten-cent pieces
-
$10,000 10,000
26. I assume that the total expense of the coinage will fall on the Colony, and the profit, if any, be allowed to the Colony; but it will be seen that the object I have kept in view in my recommendations has not been to make any profit for the Colony, but simply to establish without loss a subordinate currency to the dollar, on sound principles; a measure which cannot fail, I think, to give a great impetus to the trade and prosperity of the Colony. It will also, I believe, prove a great boon to soldiers and Europeans with small means, as well as to the poorer classes of Chinese, by lowering the prices of all the necessaries of life.
Minute of Colonel Hawthorne enclosed in Sir J. Bowring's Despatch, No. 38 of Feb. 11, 1859.
27. Concurrently with the withdrawal of the existing Proclamation, the Lords Com. missioners of Her Majesty's Treasury would have to issue instructions as to the rate at which the dollar should be paid to the naval and military services. Upon this subject I would only observe, that while I admit that it would not be fair to charge to the soldier or sailor the loss on the course of exchange, which is now and has been for some years so adverse to England, I do not think that the expensiveness of the place forms (as has been urged) any ground for issuing to those services the dollar at 48. 26., or any rate below the par founded on the average relative value of gold and silver in 'the European market. It has been calculated, from a comparison of the relative value of the sovereign and dollar here and of bills of exchange on England, that money is more valuable here than in England by about seven per cent. If, therefore, the currency of the place had been British sterling, sovereigns could only have been raised here by the sale of commissariat bills at about 21s. 5d., but they would nevertheless have been issued at 20s, and this loss on exchange, which is merely an accident of the condition of trade, is fairly chargeable to Government, who, on the other hand, profit by raising sovereigns in Australia and other Colonies where the exchanges are favourable to the mother country. But to issue the dollar which costs here 48. 7 d. at 48. 2d., if the true par be 4r. 4d., on the ground of the expense of living here, would simply be equivalent to issuing on the same account the sovereign (costing 21s. 5d.) at the rate of 19s. instead of 20s.
28. The military and naval services may, I think, fairly claim to receive their pay and allowances in the currency of the place to which they are sent on duty, and the expense of the place in a very fair ground for increasing the pay and allowances; but I think it better for many reasons that this increase should be given in the shape of an actual addition, instead of by the issue of dollars below their real value. I would recommend, therefore, that, after a consideration of all the circumstances of the case, a China rate of pay and allowances be established, and that if possible it be announced in dollars the currency of the place, instead of in sterling, which has to be converted into dollars at a given par, and which must always give rise to unpleasantness and dissatisfaction.
29. The withdrawal of the existing Proclamation would be a good opportunity for accommodating the post office receipts to the general currency of the Colony. The postal revenue belongs to the Imperial Government, and a proportion (one penny each
B