CO882-(1-2) — Page 445

the short-sighted expedient of fixing as at Macao, by legislation, the price of all articles. in the market.

November 3, 1860.

Sir C. Lewis to Sir H. Robinson, 19. As regards, therefore, the suggestions referred to in the despatch to which I am replying, that Chinese cash should be declared a legal tender at a fixed rate, I need only, I think, observe, that the existing Proclamation does so, and that it is a dead letter, and I think that, considering the circumstances under which alone this coin is issued by the Chinese Government, which I have fully described, any similar regulation must prove equally inoperative.

24. The remedy which I recommend is that the Colonial Government should coin and issue cash at the rate of 1,000 to the dollar, and that such coin be made a legal tender to the amount of one dollar. The new British cash should resemble the Chinese cash in appearance, have a square hole in the centre for the convenience of stringing, and weigh not less than one mace (57.98 grains). The shroffs and compradors connected with the banks whom I have consulted place great importance upon the weight being as near as possible one mace. The coin might be made of bronze, or of an alloy of copper and some other cheaper metal; and the intrinsic value of it should be so much below the rated value of 1,000 to a dollar as would cover the expense of coinage, and prevent any possible fluctuations in the market price of the metal contained in the coin withdrawing it from circulation. These points being provided for, I think, considering the eccentric people with whom we have to deal, it would be desirable that the new cash should, if possible, be intrinsically worth not less than the cash issued Specimen No. 7 inclosed.

by the present Chinese Government, and at first I would recommend that it should be made as much superior to that now being issued as could be done without loss. I have been unable to ascertain the value of the metal contained in 970 cash of the present Emperor, but I assume that as no coin can pass current for less than its intrinsic value, the market price of the metal cannot at all events be greater than one dollar, and that no difficulty will therefore be experienced in issuing from the treasury here 1,000 British cash for the dollar, at least equal to the present Chinese issue. I must, however, leave the question of value to be decided by competent authorities at home, after an analysis of the specimens enclosed; and I have arrived at the conclusion after comparing the price of copper, tin, coals, and skilled labour in the two places, as well as the greater value of money here, and the consequent profit on remitting it, that the coins should be manufactured in England, and sent out here.

No. 8. Drawing of Cash.

21. I enclose a drawing of the design for the coin, with the inscription in English and Chinese, which I would re- commend should be borne upon it. I feel little doubt but that such a coin would supplant the Chinese cash amongst the population of Hong Kong and the entire neighbourhood from whence the market supplies of the Colony are drawn; and I feel satisfied that by the Government retaining the issue in its own hands, and limiting it to the quantity necessary for the purpose of change, and also by limiting the amount for which it would be a legal tender, the value of the coin would be sustained on a level with that of the dollar according to the rate assigned to each by law.

22. If, therefore, Her Majesty's Government approve my recommendation, I would suggest that 20 millions cash be forthwith ordered in England, and sent out here. I do not think that less than this quantity would be sufficient to commence with, considering that the population of the Colony now exceeds 100,000, and that it would allow but 200 cash (or 20 cents per head). I have not overlooked the question of weight. The weight of 20,000,000 cash, each weighing a mace (or one-tenth of a tael of 579-84 grains troy) would be about 74 tons. The rated value would be 20,000 dollars. The freight on 74 tons from England to Hong Kong, at 12 dollars (21. 10.) per ton, would amount to 888 dollars, or nearly four and a half per cent. on the rated value. The insurance may be estimated at one and a half per cent.; the two together amounting to six per cent.; but this addition to the cost of the cash would be more than covered by the profit on remitting money to England, which is seldom less than ten per cent.

23. The dollar and the cash would, as at present, perhaps, be found sufficient to carry on after a manner all monetary transactions in the Colony; but I should also, at the same time, strongly urge the issuing of two other coins, to make the system complete; ono a copper coin, to be called a cent, and to be a legal tender to the amount of a dollar, at the rate of 100 to a dollar; the other a silver coin, to be called a ten-cent piece, and to be a legal tender to the amount of two dollars, at the rate of ten for one dollar. I think the cent especially desirable, because without it all fractional parts of a dollar, which, in Government, banking, or mercantile accounts, never descend below a cent, would have to be catered in cents and settled in cash, which would be both burthensome and inoon. venient. I do not think that the intrinsic values of these coins, which would circulate

།། ༄། ། ཱ།

PUBLIC RECORD OFFICE

61

C.O.

Reference :-

882

PUBLIC RECORD OFFICE, LONDON ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIĊ- | COPYRIGHT PHOTOGRAPH-NOT TO

DRAWING OF PROPOSED BRITISH CASH.