PUBLIC RECORD OFFICE
Reference :-
C.O. 882
ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC-
COPYRIGHT PHOTOGRAPH-NOT TO
PUBLIC RECORD OFFICE, LONDON
า
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differ so much in favour of the old Mexican, and the latter always commands a premium even over the new Mexican in the Shanghai market, where the natives decline to have anything to do with any other dollar than a clean Mexican old issue, which is, therefore, forced to a fancy price in times of scarcity. Any attempt to equalize their value here would result in the old Mexican dollars being shipped off to Shanghai for realization. As the old Mexican dollar is no longer coined by the Mexican Mint, there is bound to be a scarcity of the coin in the future.
3. The introduction of the Hong-Kong [? British] dollar as legal tender in Wei-Hai-Wei would result in a temporary rise of 3 per cent. or 4 per cent. in the price of commodities and of labour, and the soldiers and other British employees of the Government would accordingly suffer to this extent. It would not, at first, be popular with the Chinese, but it persevered with, would finally be established.
4. It will be advisable to give at least three months' notice of any intention to constitute the British dollar legal tender. The Banks will require some notice, and the Navy will be obliged to alter all their arrangements for the supply of money for ships coming north of Hong-Kong. The " China Squadron " pays in British dollars at Singa- pore and Hong-Kong, and, of course, it will be a great convenience to it to always use that dollar.
•
5. To avoid loss in the introduction of the British dollar, I am of opinion that the Government should make all payments in that dollar, and encourage, as much as possible, all payments being made to it in that dollar. I believe the effect of so doing would be to gradually appreciate the value of the British dollar and drive out the Mexican dollar locally. The extent to which this appreciation would take place would greatly depend on the way the British dollar was accepted at Chefoo. If the Banks and Customs there would accept it, it would soon become of equal value with the Mexican dollar.
6. It has, for two years, been the custom to pay the Chinese Regiment in the old Mexican dollar, and the men have now grown to look upon payment in that coin as a right; they would undoubtedly consider it a breach of trust were they paid in British dollars of inferior cash value to the Mexican.
7. In order to ensure the successful introduction of the British dollar, it is essen- tial that it should be freely accepted on a par with the Mexican dollar in Wei-Hai-Wei city, which is Chinese territory. I am in correspondence with the Governor of the province on this subject.
8. In conclusion, I have the honor to state that I am strongly in favour of the introduction of the British dollar as legal tender in Wei-Hai-Wei, and would therefore propose, if the consent of the Chinese Governor regarding the city is obtained-
(i.) That a proclamation be issued giving three months' notice of the date of introduction of the British dollar as legal tender, and notifying all native merchants that this dollar must thenceforth be accepted at the same rate of cash as the old Mexican.
(ii.) That all Government payments be made in British dollars. (iii.) That an arrangement be made by His Majesty's Government with the Hong-Kong and Shanghai Bank, whereby their Wei-Hai-Weî agency would exchange British dollars for Mexican on fair terms, until all the Mexican dollars now in the territory have been weeded out. (See Sir F. Swetten- ham's letter to Colonial Office of 9th October, 1900.)
I have, &c.,
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2. I am to ask you to represent to the Lords Commissioners of the Admiralty that instructions will be given to the Commissioner at Wei-hai-Wei, to the effect that he is to carry out the wishes of the Naval Officer Commanding-in-Chief in this matter, and the Commissioner will, of course, do so. The words, however, which their Lordships propose to insert in the draft clause 82, seem unusual, and are hardly con- sistent with the powers and position assigned to the Commissioner by the Order in Council. Moreover, Mr. Chamberlain cannot consider that they are necessary.
3. I am further to point out that the expression "naval authorities," which is used in the proposed new sub-article (3), is not defined in the draft Order in Council, and is not altogether free from ambiguity.
4. If their Lordships object to the regulations contemplated in this sub-section being made by the Commissioner, who would, of course, act on the advice of the Admiral or other senior naval officer present, I am to suggest that it would be desirable to designate some officer by name.
5. Mr. Chamberlain trusts, however, that their Lordships, on further considera- tion and in the light of the above explanations, will agree with him that the draft clause forwarded in the letter of the 13th ultimo,* fully provides for all probable contingencies.
15306
SIR,
No. 18.
I am, &c.,
C. P. LUCAS.
COLONIAL OFFICE to TREASURY.
[Answered by No. 21.]
Downing Street, May 9, 1901. I AM directed by Mr. Secretary Chamberlain to request you to inform the Lords Commissioners of His Majesty's Treasury that he has received from the War Office a letter,† copy of which is understood to have been sent to the Treasury, forwarding a despatch from Major-General Dorward regarding the proposal to make the British dollar legal tender at Wei-Hai-Wei.
2. Mr. Chamberlain proposes, with their Lordships' concurrence, to instruct Major-General Dorward to issue a Proclamation stating that after a period of three months from the date of that Proclamation the Mexican and British dollars will become legal tender on the same terms. A draft of the proposed Proclamation will be submitted to their Lordships for their concurrence.
3. Mr. Chamberlain proposes to add that the Government must use its discretion as to which dollar is to be adopted on any occasion for making payments to the troops or to any other party; but that no special preference should be shown for the British dollar.
15306
No. 19.
I am, &c.,
C. P. LUCAS.
15113
SIR,
No. 17.
A. R. F. DORWARD,
Major-General,
Commissioner, Wei-Hai-Wei.
SIR,
COLONIAL OFFICE to ADMIRALTY.
[Answered by No. 20.]
Downing Street, May 4, 1901.
I AM directed by Mr. Secretary Chamberlain to acknowledge the receipt of your letter of the 30th ultimo,* proposing certain amendments in the draft clause numbered 82 in the draft Wei-hai-Wei Order in Council, forwarded in the letter from this Department of the 13th ultimo.t
• No. 15.
† No. 11.
COLONIAL OFFICE to WAR OFFICE.
Downing Street, May 9, 1901.
In reply to your letter of the 1st instant,† regarding the proposal to make the British dollar legal tender at Wei-Hai-Wei, I am directed by Mr. Secretary Chamber- lain to transmit to you, to be laid before Mr. Secretary Brodrick, a copy of a letter‡ which has been addressed to the Treasury upon this subject.
2. As regards the point raised in the third paragraph of your letter under reply, I am to ask you to call Mr. Brodrick's attention to the last paragraph of the enclosed letter.
I am, &c.,
C. F. LUCAS.
• No. 14.
† No. 16.
No. 18.
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