1873 — Page 142

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COURSE OF EXCHANGE.

The course of Exchange during the year 1873, was extremely fluctuating. From January to July, drafts on home at 6 months oscillated between 4/54 the $ and 4/64. In August, a rapid decline took place; in fact 4/38 was about the ruling price. The average rate to the end of the year was not more than about 4/24 for 6 months, 4/2 for Bills at 3 months, at 30 days' sight about 4/14, and at sight only about 4/1.

The principal causes would appear to have been from most disastrous reports as to the state of the Silk Trade at home, and consequent non-shipment of this important article from China, which first weakened the rates at Shanghai and then affected Hongkong. Secondly, from the fact that the German Government threw into the market £000,000 worth of Dollars, which, like every other article of commerce, commands prices according to supply and demand.

It was also known that, that Government possessed the enormous sum of 37 millions Sterling in Silver, and it was believed that this amount was to be sent to India; this caused quite a panic, and brought down the rates in India very low; the rates here generally sympathize with those of India, and thus the immense fall. It may be not unnecessary to state, that the course of Exchange here is much influenced by the Bank of England rates, yet my impression is, the feelings or calculations of the Bankers have a still greater effect. To this conclusion I am led by the fact that a very considerable difference often exists in the rates offered by Tenders; when Money is required and advertised for the Treasury Chest here, daily circumstances are such that the rates quoted in Newspapers, &c., can only give a general idea of what may be obtained.

During the year, Bills were drawn upon the Lords Commissioners of Her Majesty's Treasury at 30 days' sight as under :-

On March 10th, for £103,755......

........at 4/4 to 4/47.

..at 4/314

On August 1st, for £170,000............

Countersigned,

C. K. CLEEVE,

Assistant Controller.

THOS."W. COOPER,

Treasurer.

COINS,

The Currency of the Colony is now regulated by the Queen's Proclamation issued under Her Majesty's Order in Council of the 9th January, 1803, a copy of which was published in the Hongkong Government Gazette of the 2nd May, 1863, and such Currency, as hereinafter stated, was made a legal Tender throughout the Colony, from the 10th February, 1864, as proclaimed in the Gazette of the 23rd January of the same year.

The above Currency consists of the following Coins, viz. :-

1. The Dollar of Mexico.

3. The Hongkong Dollar and Half-Dollar issued from Her Majesty's Mint.

3. Silver Coins issued from Her Majesty's Mint, representing:-

(1.) One-fifth part of the said Dollar, and commonly called "Twenty Cent Piece." (2.) One-tenth part of the said Dollar, and commonly called "Ten Cent Piece," and (3.) Oue-twentieth part of the said Dollar, and commonly called "Five Cent Piece."

4. Copper or Bronze Coins, also issued from Her Majesty's Mint, representing:-

(1) One-hundredth part of the said Dollar, and commonly called, "One Cent Piece," and (2.) One-thousandth part of the said Dollar, and commonly called "Mil” or “Cash."

The Silver or

"Ten Cent Picces," and "Five Cent Pieces," are a legal Tender of payment for any sum not exceeding Two Dollars, and the "Cent Picces" or "Mils" for any sum not exceeding One Dollar.

No marked change has taken place in the Coine in circulation, the New Die Mexicans are much liked in many Ports, and are current for their full value in Japan.

The New American Trade Dollar, I have little doubt, will soon become a legal Tender, the Chinese at Canton and Foochow have, I learn, accepted it.

Countersigned,

THOS. W. COOPER,

Treasurer.

C. K. CLEEVE,

Assistant Controller.

AMOUNT OF COIN IN CIRCULATION.

$1,421,487.50 355,981.03

Approximate Amount of Hongkong Dollars and Half-Dollars, ......... Approximate Amount of Hongkong Subsidiary Coins,......

Of Spanish and South American Dollars, or Gold and Silver Coins of other denominations, it is impossible, even by approximation, to ascertain the actual amount in Circulation.