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COLONIAL CURRENCY COMMITTEE:

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able theoretically, but it opone up the great questions of cost of production and of ways and means, the chief desiderata in all undertakings! This is a point I hope this meeting will debate and debate frefly and fully, and if necessary appoint a special sub-committee to consider. The minting of a British dollar was, I believe favourably Considered by this Chamber in 1877, but I cannot trace Lust anything practical resulted. In considering this question, many will call to mind with regret that Hong. kong once had a mint of its own, and that they abandoned it hastily and sold their plant to our friends in Japan. It was a grievous error in the light of subsequent expe- rience, as I doubt not that had the mint been con tinned a few years longer it would not only have been a satisfactory source of revenue to the Colony, but are this would have supplied the Chins Straits trade with its dollars and probably permeated the length and breadth of China, and we would not to day be under the nocessity of discussing how we are to avoid running dry in the event of Mexico stopping her silver coinage. If there be those here, or in this Colony, who advocate re-establishing a mint in Hongkong, I may they must count the cost; the opportunities what they were and the finances of the Colony are not at present, I regret to say, in a condition to justify any outlay for experimental enterprises. In this connexion I do not think it will be out of place to say a word about aqbsidiary coins. The Government of this Colony for s time issued these very profitably, to the great conven. ience of all olasses of the community whether European or Chinese, but for some reason which may be capable of explanation, but which is not at once evident, this supply has not been kept up, or has not been sufficient, and the Colony is now flooded with coins from the Canton mint of the value of which there is no guaranteo whatever, and I hope the Government may see the advisability of taking steps to discourage their circulation in the Colony. Matters would be entirely different if the Imperial Government of China issued dollars and subsidiary coins of guaranteed weights and fineness; ware such the fact it would be of inestimable value to us, and we would be indifferent in a great degree to the action of Mexico, ma nothing could be more natural than that at the gates of this great Empire we should bare its money for our trading purposes, instead of haring to introduce the Japanese yen as an auxiliary to the Mexican dollar. I would express the hope that this meeting may pass a resolution recommending the adoption of the Japanese yen as a legal tender, at least as a tonlative and precautionary measure, and I am sure such a step will be favourably viewed by all inter ested in this Colony. As to nrging on the Government the ooining of British dollars, that is a matter requiring further consideration before I would venture to make a recommendation. It may be that a British dollar would furnish the best permanent protection against a scarcity of our old friend the Mexican, but so far as I can ascertain we do not know what profit can be made ont of it for this Colony, or its precise cost of production and transport, and all these points, and many others must be removed from the region of doubt before we commit ourselves in regard to it. In resuming my seat, gentlemen, I must express my regret for detaining you No long, but the grave importance of the subject must be my apology, and I am sure this Chamber will, with me, realise the responsibility it assumes in this weighty

matter.

Mr. T. Jackson.-Gentlemen, I was one of the members of the Committee of the Chamber of Com- meros in the 70's which the Chairman has alluded to when the question of the introduction of the Japanese yen was advoosted, and I do not know now any more than I knew then why it was not legalised. We had abundant ovidence then of the purity and honesty of the Jeu, of the very excellent administration of the Japanese mint, and we knew not only the quality and character of the mint, but also the man who conducted it, becansé they were the men who had been employed by the Govern ment in the Hongkong mint. Since that time our experience of the Japanese yen has been uniformly good, and I do not bellave that there is any place in the world where there is a better and truer coin than the Jen. It is almost univerrally used by the Japanese themselves, although the legal tender in that country is the Hexion dollar according to Treaty. It has been received with great favour in the Straits Settlements, and here, although not a legal tender, we would have no difficulty in paying it away to the only people we have to pay hard cash to the Cantonese. Under these circum- nose, I think that it is highly desirable that the yen Lould be placed on a proper footing in this Colony,

legalised, and allowed to circulate concurrently with the Mexican dollar. Referring to the Mexican dollar, I may say that I do not think there is the slightest fear of the Mexican mint. I think that there is at present no evi- dence to justify anybody in coming to that conclusion; but what we might fear in the Mexican Government, seeing their opportunity, might put an export duty of, say, 8 or 5 per cent. on the export of the Mexican dollar. That being the case it would bandicap us to that extent in our dealings and commerce with other nations. That, I think, is al the more reason why we should have a second string to our bow by adopting the yen, and if the Japanese Gov- ernment, as I hope they will, carry out their original intention of making the yen the universal coin for this part of the world," I think that there is a splendid opportunity of doing so. But, on the other land, if they should seiss the opportunity of making profit and say that their mint is too small to undertake the work, it would be extremely unmtisfactory. Therefore I think that it would be still better if we had a British dollar to go concurrently with the other two. (Hear hear.) I would point out that the circumstances are not what they were when we previously discussed this question. When we discussed the question in the 70's I opposed the introduction of the British dollar because I could not see how it could pay. At that time for nine months out of twelve we could always buy the Mexican dollars at their proper weight and fineness, and I therefore asked who was going to pay for the minting of the British dollar. You must deal with practical politics, and what I said then is equally true” to-day. There is, however, another thing to be seriously borne in mind, and that is that the recent action of the Indian Government in protecting the rupee and leaving the dollar and all other silver unprotected will have a vast influence on the trade of the Far East. I believO that the trade of the Far East might increase at the expense of the Indian trade, and instead of being ex- porters of silver we might be importers in China. I am convinced that before long the trade of China will have increased in the same proportion as the trade of India has increased. The trade of India has increased between 1878 and 1892 from 54,000,000l. to 108,000,0007., and how people legislating for a country like England could in the face of figures of this kind adopt measures like this passes my comprehension. I very heartily pro- pose that we recommend to the Government that the Japanese yen be made a legal tender in this Colony.

Mr. Granville Sharp.-I am sure that we are much indebted to Mr. Keswick for the very interesting account he has given us of the history of this movement and the present position of affairs. You will all of you know that this is not new ground by any means. This matter how been before the Chamber for the last 20 years within a few months. It has been frequently proposed since 1879 that the Japanese yen should be made legal tender in Hongkong, and on every occasion upon which it has been disonssed in this room the discussion has resulted in a stronger emphasising and a more general expression of the desire for a British dollar, in which I am anre every Briton in this Colony will sympathize, and which will also be felt by other nationals who are bere. The first discussion took place in December 1873. There were two meetings held, and the adjourned meeting which was held resulted in a resolution, pro- posed by Mr. Whittall, of Messrs. Jardine, Mattheson and Co., and seconded by Mr. Kay, the Manager of the Chartered Bank, that every effort should be made to obtain by all practical means a British dollar for Hong. kong. On February 16, 1877, the banks in the Colony united in a memorial to the Government, which was supported by the Chamber of Commerce, that the home Government should be induced to take steps for the provision of a British dollar for Hongkong with a view to the ultimate re-establishment of the Hongkong mint. On March 7th, 1878, at another meeting of the Chamber of Commerce, the subject was again brought forward, and Mr. Byrie, who was then chairman, proposed a resolution. which was supported by Mr. Jackson, that the Hong- kong mint be re-established and every step possible and practical should be taken with that end in view. From

187 to 1886 the matter remained very quiet, when we were awakened by an application from Singapore begging and praying the Chamber of Commerce to unite with them in obtaining a British dollar for Hongkong, Singapore, and the Straits Settlements. On May 8lat 1887, new event happened in the offer which the Government received from the Japanese Government to coin a silver yen for Hongkong. Singapore, and the Straits at 1 per cent. This was declined by the Chamber for a variety of reasons-it was thought undesirable at

APPENDIX IL

the time to enter into the arrangement. I think that we shall all agree that our present cut'rency in inadequate and unsuitable. We have the currency of 1843 in 1893. We are still burning the rublight in the days of electric currents. (Laughter.) It may be deemed economical to use a dollar which is made and sent already for use to us here, but I think it is about equivalent to all the foreign community going about in slop clothes, or the British army being clothed by the worn-out and cast-off uniforms of France, Russia, and Germany. Mr. Keswick has very properly and wisely said that before we can think of indulging our selves in a British dollar we must count the cost. This should be done in all things, and in this as much as any- thing else. An idea has occurred to me only this morning, about an hour before I came into this room, that perhaps the application which the Japanese make to us to allow them to do the work of coining the Japanese yen for circulation in Hongkong and the Straite might be turned into an enquiry on our part whether the Japanese Government would he willing st their mint, their magnificent mint-one of the best mints in the world-at Osaks, and with all the advantages which that mint possesses and which have been referred to by the Chairman in connection with the Japanese Jen-whether they would coin a British dollar on the Hame terms on which they propose to coin the Japanese ren. They might possibly refuse, but I think it is quite possible that they might consent. The cost would Le the same, and if the Japanese Government will coin British dollar, and make that dollar legal tender in Japan, we may very well in return make the Japances yen legal tender in Hongkong and Singapore, I have had no opportunity of seeing the members of the Com- mittee on the subject, because the ides only occurred to me one hour ago, but it seems to me that it might lead to a solution of the dimeulty in which we are at present placed. The Japanese would and great advantage in it, and I believe that nothing would do more good in Japan at the present time of excitement and questioning than the circulation of a number of our spins with our noble and revered Queen upon them. I have just returned for the eighth time from a visit to Japan, and amidst all its beauty of scenery and people there is something lacking there. There is something lacking, and I am not quite sure that Englishman are loved sa mach there as they ought to be or as they were. Possibly it is that those Englishmen and other foreigners with whom the Japanese come into most close contact are not those whose influence is calonlated to impress favourably the Japanese as a nation. I do think that while they are studying earnestly the English language, English lite rature, and English history, it would be a fine thing if we could possibly get them to look favourably on the English character, and I do think that the Queen's head would do more to pave the way for Treaty revision in the sense in which the Japanese desire their Treaties to be revised than anything else they could possibly adopt. It would bring us more closely toguther; there is no question about that. You will remember the song of the French poet of the First Empire which says, "You make the laws; let me write the ballads." And I think we will find that of advantage to us in Hongkong. There is too little disposition on the part of the Chinese to render unto Car the things which are Cuer's, and I do not think the Chinese in Hongkong behave to us ns they did 35 years ago when I first came here. I think they want to see the Queen's head among them a little inore, and a few more of those dollars which once circalated in the Colony, and which are now hoarded up for their beauty and associations which linger round them. I cordially support the resolution brought for- ward, but if we can get our British dollar coined in Japan upon the condition of making the Japanese yen legal tender in Hongkong and the Straite Settlements I think it would be a good arrangement for all parties.

Mr. J. H. Scott-I have much pleasure in seconding Mr. Jackson's resolution.

The Chairman.-Gentlemen, you have heard the repo- lution which was proposed by Mr. Jackson and seconded by Mr. Scott. - Thầs this Chamber move the Govern- nont to make the Japanese yen legal tender in this Colony."

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The resolution was then put and carried unanimously. Hon. T. II. Whitehead.-I rise to move," That a Special Committee be appointed by the Committee of the Hongkong General Chamber of Commerce to **inquire into and report on the desirability, in the in- teresta of trade, of the coinage of a British dollar equal in weight and finenoss to the Mexican dollar, " for circulation in this Colony concurrently with the

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"dollars which are now legal tender." It would be weil, as Mr. Jackson bas said, that we should have more than one string to our bɔw, and I fully concur with the ramarks made by Mr. Jackson in connection with the Mexicau dollar. At present, and for the last two weeks, it has not been possible to purchase Mexican dollars in the London market, and they have been quite as scarce in America. In view of the extraordinary policy adopted by the India Government it is very difflenit to conceive what the Mexican Government (acting in unison with the American Government) might not do. It is quite possible a heavy export duty may be exacted in future, and if we had nothing hat the Mexican dollar to fall back upou, our trade would have to bear the brunt and heat of the day. As regards the Japanese yen, they are and have been proved to bɔ of uniform and safe value, but we do not know what the Japanes Government may do after what India bas done, Japan may be inclined to limit her coinage or increase the mint charges; the signorage or mintage-1 por cont.— now.exaorod by the Government leaves a bas, it is understad, of per cent. In addition to that, if those who have to provide the currency had to ship bar silver from here to Kobe, convey it by rail from Kobe to Oaks and back to Kobe, and ship the money to shipping, freight, and insurance and railway charges. Hongkong, they would have to hear the ubargos for together with the loss of interest, which would increase the cost by at least 1 por cent. It is thereby most de sirable that it should be possible to have a dollar coined in London. The mint is already established there, anḍi all that is requisite and neocamry is simply to have fresh dies; there are also the mints as Bombay and Calcutta, and by having these resources to fall back upon we would be better off than if we were limited to the Mexican dollar and the Japanese yen. I, therefore, have much pleasure in moving the resolution I havo just read ont.

Mr. J. J. Franois seconded the resolution. With re- they should endeavour to get the Japanese Government ference to the suggestion of Mr. Granville Sharp, that

to coin them a Eritish dollar, he did not think that the it would in any caso be desirable that a foreign nation- proposal was at all practicable and he did not think that

should coin anything bearing the Queen's head. As to the establishment of a mint at Hongkong he did not think that that would be a ramanerative "enterprise, as the Chinese Government were manifesting a disposition to have mints of their own, and if they went in for a system of mints in all the important poris we should soon find that we had no market for the coins which it cost us so much to proluce. He thought therefore that it would be going in for a very grost risk to start a mint in Hongkong, seeing how heavy was the expenditure necessarily entailed in the establishing of a mint. might, however, be very advantageous to bare a British dollar coined in Bambay, London, or Calcutta as there would not then be any initial cost.

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Hon. T. H. Whitehead called the attention of the members to some correspondence with the Scoretary of the Singapore Chamber of Commercs in 1987, which he Baid was of such general interest in connection with the subject they were discuring that perhaps the Press might see their way to ropublish it.

Mr. J. 8. Isprik asked whether the members of the Committee to be appointed to enquire into the question of a Hongkong dollar must necessarily ba members of the Chamber of Commerce.

Hon. T. H. Whitehead said that there was nothing in bis resolution which suggested that, and that it would be quite open for the members of the Committed to invite any gentlemen to join the sub-Committed.

Mr. Granville Sharp made a few remarks on the difficulty at present experienced in obtaining subsidiary coinage from the Treasury, and suggested that that might very properly fall within the scope of the sub- Committee's enquiry. At the present tiine if any one required change for $10 they had to send for an order to the Treasury and then go to the Hongkong and Shaughai Bank for their small change. This was most inconvenient, and he thought that some different system might be suggested.

Hon. 7. H. Whitehead mid that it was very difficult for the Government to give what they had not got. A few days ago ho applied for $10,000 or $12,000 worth of subsidiary coinnge and he was informed that thứ Government had not got it.

Mr. J. J. Francis proposed that the Committee should take into consideration the question of submidinay coinage.

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