PUBLIC RECORD OFFICE
गय
سلئسسا
Reference :-
C.O. 882
5 PUBLIC RECORD OFFICE, LONDO
ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC, COPYRIGHT PHOTOGRAPH-NOT TO
46
COLONIAL CURRENCY COMMITTER:
to India for the coin, and if the Indian Government had otherwise no objection to the proposal. It would be convenient if this inquiry could be made by telegraph, in which ease it is essential that the Indian Govern- ment should be made aware of the Japanese charge for minting silver intu yan.
I have, &c. (Signed)
R. H. MADE.
The Under-Secretary of State,
India Omoe.
No. 24.
The MARQUESS OF RIPON to Sin W. KOBINSON.
(Hong Kong. No. 18,)
SIK,
Downing Street,
January 31, 1894.
I HAD the honour to receive from you on the 19th instant a telegram stating that a Special Committee had recommended the coinage of a British dollar for Hong Kong, and suggesting that the Indian Mints should be naked to coin such dollars at one per cent. seignorage.
1. On the 24th instant I informed you by telegraph that in view of the great difficulties of the question I would await the receipt of the report of the committee referred to by you, before coming to any decision.
3. I have also received your telegram of the 27th instant, reporting that the Committee recommend the abandonment of the proposal to legalize the Japanese yen in Hong Kong,
4. Only a few months ago, in your despatch No. 150 of 21st July last, § you reported that a resolution had been unanimously passed at a special meeting of the Hong Kong General Chamber of Commerce in favour of the legalization of the Japanese yen, and in your despatch No. 181 of 5th September last you forwarded reports tending to show that the yen was beginning to be accepted in Southern China almost as freely na the Mexican dollar. 1 inquired by telegraph on the 27th of October last, when I might expect the report of the committee appointed by the Chamber of Commerce to consider the question of coining a British dollar for Hong Kong, and you replied by telegraph on the 31st of October that the idea of a British dollar was abandoned.
5. These rapid variations of opinion incline me to doubt whether the question has received the careful oop- nideration which it deserves, and to hesitate before giving my assent to the experiment of coining a British dollar, the success of which depends on the cost of the operation and on other considerations.
L
6. I observe that in your speech to the Legislative Council on the 4th ultimo, enclosed in your Despatch No. 233 of the 6th altimo, you remarked that it “is probable, unless the Japanese yen is made a legal "Lander, that action will shortly be taken in the "direction of the coinage of a British dollar." With reference to this remark, I have to explain that, although I have not hitherto replied to your despatches of the 91st July and 5th September last, the proposal to legalize the Japanese yen has not been lost sight of, but it has been and is still under the careful considers. tion of those who advise me an currency questions, and I was hoping to address you very shortly on the subject when I received your telegram of the 19th instant on the subject of a British dollar. Ar st present advised, I fail to understand why the yen should be abjected to in Hong Kong, even though it is proposed to osin a British dollar. You are, of course, aware that it is a legal tender in the Straits Botilaments where it is used as an alternative to the Mexican dollar.
T. I take this opportunity of requesting you to tranamis to me at your early convenience copies of all the currency proclamations which have been issued under the Hong Kong Ordinance No. 1 of 1864, and have not sinos buen repealed.
No. 25.
THE LONDON CHAMBER OF COMMERCE to COLONIAL OFFICE.
MY LORD,
Botolph House, Eastcheap,
London, E.C.,
February 12, 1894.
This Chamber has, at the request of the Hong Kong Chamber of Commerce, conveyed to us by telegram, carefully considered in conjunction with its East India and Chins Trade section, the advisability of creating a British dollar, and I am now directed to bring to your Lordship's attention, on behalf of the Section, the desirability of at this time sanctioning a new coin to be minted in India and to be made legal tender in the Straits Settlements and Hong Kong, and to run pari paasn with the Mexican dollar in the latter.
In venturing to impress upon your Lordship the great necessity for a change in this direction, I am desired to point out that the probable effect upon the silver industry of Mexico (consequent upon the rapid fall of silver as compared with gold) may be an inter- mittent and decreasing supply of Mexican dolları. That there is a pronounced tendency in this direction is evidenced by the fact that during the past six months the supply of Mexican dollars has not kept pace with the demand for the East as proved by the scoompany. ing table, which shows constant and sometimes excessive premium procurable for the coin as compared with raw silver, whereas in former years the difference between the melting price of Mexican dollars and the price of silver rarely exceeded one-eighth of a penny
per ounce.
It is understood that the Indian Mints will be pre- pared to coin British dollar at a charge of about 1 per cent., and this moderate cost, it is thought, will ensure a steady demand for the new coinage.
In this connexion I am to remind your Lordship that a Mint was established many years ago in Hong Kong. and the coins issued therefrom were well received, and would, had it not been for the competition of the Mexican dollar, probably long ere now have become the recognised currency all over the East outside of India.
APPENDIX IL
No. 26. COMPARISON of the INTRINSIC VALUE of DOLLARS with SILVER from January 1891 to June 1893
(Silver 925 fine Dollars 900 fine). [Communicated by Mr. J. H. Gwyther, 10th February 1894.]
Date.
Silver.
Dollars.
Per cent,
47
*11 premium.
13 ⚫015
"
*047 discount.
*19 premium.
*20 discount.
*08
"
.18 premium,
-18 discount.
⚫08 discount
*31 discount.
-24
1:01. January $ 15 February 1
16
March
16
April
1
15
May
1
-45
15
+16
H
H
Jube
1
-61
P
15
.18
July
1
*006
18
M
Angost 1
-29
15
+04
2%
September 1
October
•21 premium.
15
1
'08
15
· 09
"
"
November 1
· 14
16
.39
December 1
+38
j
15
-29
January
1892. 1
15
**2
H
February 1 March
40
46
13
*20 premium.
'009 discount.
15
#1
April
· 18
⚫17 premium.
May
38
⚫19
40
89
*$5 discount.
H
June
39
.08
"
15
40
27 premium.
July
1
+22
"
15
39
.85
"
August
·
38.
-81
H
38
$7
1 10
И
September 1
38
37
1.10
1
13
-77
П
October 1 15
39
89
November 1
15
H
December 1
15
H
1893
January
Secretary.
16
February 1
3*
સમા
07 discount. *09 premium.
.10
M
15
38
-10
"
Whitehall, 8. W.
March 1
38
-10
M
15
80%
'06
April
38
.77
M
88
1.10
Enclosure in No. 25.
H
May 1
38
-37
15
-77
Silver.
Mexican Per-centage Dollars. of Premium.
June
1:43
15
· 10
The circumstances then prevailing have recently so far been modified by the position of the silver market that there would seem to be now a favourable oppor. tunity of establishing what would be virtually a British currency throughout the East. We cannot but suppose that such a stop would tend greatly in favour of British interests and open up an enormous field, to some extent under British influence, for the absorption of silver, which, so far as can be judged, must remain the cur- rency of these countries, in whose trade we are so deeply and vitally interested.
The Chamber may have again occasion to address your Lordship on this important subject, when com- munications now on their way from Hong Kong have been received; meantime I am to express the hope that the proposal now put forward may have your Lordship's most careful consideration.
I have, &c. (Signed) KERIC B. HURRAY.
The Right Hon. the Marquesa of Ripon,
Colonial Office,
כן
1893.
June July
28th
8.11
17th
5.83
August lat
6.70
16th
3.16
September 1st
Sra.
1-64
18th
H
.90
29th
•
24
33
1.65
October
18th
3.10
November 2nd
39
9.76
I have, &c. (Bigned)
18th
19
9.18
RIFON.
December 2nd
$14
8.77
18th
14
9-16
18th
M
8.10
8. Pending the ressips of the report which I have asked you to send on the question of the British dollar, I will communicate with the India Omos and inquire whether the Indian minte could undertake to cola such dollars, and if so, on what terma.
Sir W. Robinson, K.C.M.G.
*Mo.. † No. 21. ↑ No. 18. f No. L. No. 16. Nos, 17 and 18.
40
40
881
88 T
No. 27.
1.10
•14 discount.
-18 premium.
· 19
H
008 discount. '09 premium.
INDIA OFFICE to COLONIAL OFFICE. [Answered by No. 28.]
India Ofoe, Whitehall, 8.W. February 21, 1894. In reply to your letter of the 30th ultimo, I am directed by the Earl of Kimberley to transmit, for the information of the Marquess of Ripon, a copy of a telegraphic correspondense with the Viceroy of India, from which it will be seen that, under present circum- stances, the Mints of India would be able to coin about five millions of dollars for use in the Colonies, at a charge of one per cent.
The Under-Becrotary of Binto,
Colonial Ofoo.
I have, do. (Signed) A. GODLEY.
Enclosure 1 in No. 27.
TELEGRAM TO GOVERNMENT OF INDIA.
Dated February 6, 1894.
47
Governor of Hong Kong proposes Mints in India ooin British dollars equal Mexican intrinsic value for one per sent soignorage. Colonial Office pending decision ask if you are prepared to undertake this and what would be coat inclusive. Japan coins yen for one per cent.
Enclosure 2 in No. 97. TELEGRAM Fox Governant op IndIA. Dated February 17, 1894. Your telegram of 6th February last. Dollars for Hong Kong. Under present circumstances of closed Mints we could coin a large quantity, say about fre millions of dollars, for a charge of one per cent.
No. 27A.
SIR W. ROBINSON to the MARQUESS OF RIPON. (Received March 6, 1894.) EXTRACT.
(No. 19.)
Government House, Hong Kong,
January 28, 1894. RAPEERING to my telegram of the 19th, so your Lordship's reply of the 34th, and to my further islegrain of the 27th instant,” I have the honour to transmit, for your Lordship's information, she enclosed copies of two letters,† dated the 24th and 97slı instans, which I have received from the Honourable J. J. Keswick, chairman of the Chamber of Commerce, together with copies of the report therein referred to of a special committee the Chamber on the question of the local currency.
Enclosure in No. 27A.
"THE DAILY PRESS."
Hong Kong, Jaxuary 19th, 1894.
A BRITISH DOLLAR FOR THE FAR EAST.
of
ITS COMAGE RECOMMENDED BY THE SPECIAL COMMITTEN OF THE CHAMBER OF COMMERCE,
The following report by the special committee appointed by the Chamber of Commerce to consider the expediency of ooining British dollar has been forwarded to us for publication :---
Hong Kong, 18th January, 1894.
The Chairman, Hong Kong General Chamber of
Commerce. Dear Sir,-We, the andersigned, were appointed a Committee, pursuant to a resolution of a special general meeting of the Hong Kong General Chamber of Com- marca, held on the 19th July, 1838, "to inquire into "and report on the desirability, in the interests of
trade, of the coinage of a British dollar, equal in "weight and fineness to the Mexican dollar, for iron- "lation in the Colony of Hong Kong, concurrently with "the dollars which are now legal tender," and we have now, after full inquiry and consideration, to report as follow-
+1
We find that the Mexican dollar and the Hong Kong Government dollar are the only legal tender in the Colony, and that the supply of Mexion dollars in the London and American markets has very considerably diminished during the past six mouths. This is chilly due to the heavy fall in the gold prios of silver since the closing of the India Mina, to the free coining of silver on the 26th June, 1893, and to the repeal of the Slier- man Act in the United States on 31st October last. The Mexican exchange has been unable to adapt itself to the serious decline in the price of silver) Mexioan dollars continue extremely scards, insuficiant for the require- ments of the trade of the Colony, and there is no likeli- hood of any increase in the supply under prosent cir camstances. The scarcity of Mexican dollara haa seriously reduced the circulating mediam in Hong Kong, has been highly inconvenient, and may very easily at any moment become dangerous. The Hong Kong Government dollar is now protically out of oiroula- tion, and appliances no longer exist for the coinage thereof.
• No.
• Nos, 28, 81, and 28,
+ Not printed.
F4