9. The year under review is interesting as being the first year during which our managed currency has functioned free of speculative influences. The result has amply justified the abandonment of silver as an absolute standard. In 1935 exchange was 1/8 in January, 2/6 in April, 1/11 in September and 1/8 in December. In 1936 exchange opened at 1/3¼, remained fairly steady till June and then gradually declined to 1/2, at which level speculative operations practically ceased and the market settled down to rates that throughout 1937 have shown no more than normal trade fluctuations within very narrow limits. The steadiness of exchange has promoted confidence in foreign trade dealings and enabled merchants to take a longer view of their commitments than was possible when trading prospects were subject to the vagaries of the Silver Market. Equally important has been the stability of the Chinese National Dollar. In 1935 the Colony experienced not only violent exchange fluctuations in currencies based on gold but was faced by equally disturbing fluctuations in exchange on China that was nominally functioning on the same silver standard and on a similar silver dollar as Hong Kong.
10. Subsidiary Coinage.-In consequence of the counterfeiting to which the cupro-nickel 10 cent and 5 cent coinage has been exposed since its introduction in November, 1935, it was decided with the advice of the Royal Mint authorities to replace the cupro-nickel with a new issue of nickel coins somewhat larger in size and having a security rim specially designed to defeat ordinary methods of counterfeiting. Up to the end of 1937 new security rim nickel coins to the face value of $292,500 had been put into circulation concurrently with the cupro-nickel issue. It is the intention to withdraw the latter as supplies of the new coins become available.
In addition to a small quantity of silver coin still in active circulation the following amounts of subsidiary coin were in circulation on the 31st December, 1937:-
Type Face Value Cupro-Nickel 10 cents $1,500,000 Cupro-Nickel 5 cents $50,000 Security Rim Nickel 10 cents $262,500 Security Rim Nickel 5 cents $80,00011. During the year a change in the general system of financial administration was brought into operation. As part of a general change in the financial organization of Colonial Governments the Colonial Treasurer has been replaced by an officer having the title of Financial Secretary who forms a part of the Colonial Secretariat. The detailed administration and accounting work connected with receipts and expenditure has been entrusted to an officer under the title of Accountant-General who is in direct charge of all ordinary Treasury work.
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9. The year under review is interesting as being the first year during which our managed currency has functioned free of of speculative influences. The result has amply justified the abandonment of silver as an absolute standard. In 1935 ex- change was 1/8 in January, 2/6 in April, 1/11 in September and 1/8 in December. In 1936 exchange opened at 1/31, remained fairly steady till June and then gradually declined to 1/2, at which level speculative operations practically ceased and the market settled down to rates that throughout 1937 have shown no more than normal trade fluctuations within very narrow limits. The steadiness of exchange has promoted confidence in foreign trade dealings and enabled merchants to take a longer view of their commitments than was possible when trading prospects were subject to the vagaries of the Silver Market. Equally important has been the stability of the Chinese National Dollar. In 1935 the Colony experienced not only violent exchange fluctuations in currencies based on gold but was faced by equally disturbing fluctuations in exchange on China that was nominally functioning on the same silver standard and on a similar silver dollar as Hong Kong.
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10. Subsidiary Coinage.-In consequence of the counter- feiting to which the cupro-nickel 10 cent and 5 cent coinage has been exposed since its introduction in November, 1935, it was decided with the advice of the Royal Mint authorities to replace the cupro-nickel with a new issue of nickel coins some- what larger in size and having a security rim specially designed to defeat ordinary methods of counterfeiting. Up to the end of 1937 new security rim nickel coins to the face value of $292,500 had been put into circulation concurrently with the cupro-nickel issue. It is the intention to withdraw the latter as supplies of the new coins become available.
In addition to a small quantity of silver coin still in active circulation the following amounts of subsidiary coin were in circulation on the 31st December, 1937:-
Cupro-Nickel
10 cents
Face Value.
$1,500,000
5
50,000
21
Security Rim Nickel
10
262,500
*1
5
"
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ADMINISTRATION.
80,000
11. During the year a change in the general system of financial administration was brought into operation. As part of a general change in the financial organization of Colonial Governments the Colonial Treasurer has been replaced by an officer having the title of Financial Secretary who forms a part of the Colonial Secretariat. The detailed administration and accounting work connected with receipts and expenditure has been entrusted to an officer under the title of Accountant- General who is in direct charge of all ordinary Treasury work.
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