CO129-167 - Sir Kennedy - 1874 [1-8] — Page 181

}

The Daily Press.

HONGKONG, FEURTARY 6TH, 1874.

Ir will be a matter of regret should the Go- vernment decide that the One Dollar Hong- kong notes shall be done away with, and we trust that opon further consideration the idea which, as stated yesterday, is entertained in favour of this course may be abandoned. The Dollar notes have unquestionably been one of the greatest boous to the Colony, and have much diminished the annoyance result- ing from the absence of a clean and reliable currency. It would, therefore, be a great pity that the Colony should be deprived of this convenience at all events before a reliable currency has been established. We are not aware of the precise grounds which have in- fluenced the Government in the matter, but understand that it is chiefly a question of principle or rather of precedent with them. At home, no notes under the value of a pound sterling are allowed to be issued, and it seems to be considered that the same rule should of necessity be applied out here. It is, however, open to question whether a principle of this description is really ap plicable under a totally different set of financial circumstances, and unless it is quite clear that inconvenience or financial difliculty is likely to accrue, it seems very undesirable to deprive the Colony of a boon which was welcomed by all classes with satisfaction, and which up to the present has certainly been advantageous in every respect. We trust, therefore, that the matter may be reconsider- ed, and the facts connected with it be care- fully ascertained before final action is taken.

If, however, it should be decided that the i dollars notes should be withdrawn, it is to be hoped that they will be allowed to continue in circalation at all events until a new cur- rency has been established. The occasion of their withdrawal might in fact be availed of to obtain currency for a new and suitable coin, as it would at once be in considerable demand, and the benefits of being clear of the chop dollar difficulty having been to a great extent experienced for a time, the public would be little disposed to revert to an undesirable a system. We under staud also that at the present moment there are fewer chopped Mexican Dol- lars in the Colony than there have been for a long time past, and consequently, it would be a favourable opportunity for action to be taken. It is a question whether for the time being it might not be the best policy for the Government to take some steps by which

5-555

176

TREASURY 9862

only clean Mexican Dollar will be considered currency, and so pave the way to the final introduction of a suitable coin which 17 JUN 74 he made equivalent in size, weight, and fine- ness to the Mexican Dollars, and could for a reasonable period be used side by side with it. By this means sufficient time would be! given to enable the new coin to come into circulation, and to become familiar to the Chinese. Unless it possessed the latter ad- vantago, it would be very much limited in its utility, and it would be well that special care i should be taken upon this point. It may be recollected that Mr. WADE, some time ago, suggested that an advantage might be gained by striking a coin in Hongkong of the same weight and fineness as the Imperial Tacl; but against this plan, which might have some advantages, we have to set the fact that th Mexican Dollar is now thoroughly well known in the interior of the country, and that, from painful experience of ill-faith, the na- tives are far more ready to trust & coin of foreign manufacture than one which contained any- thing of a Chinese element in it. Although, therefore, there are no doubt some reasons which at first eight seem to go in favour of adopting a Chinese Tacl standard as the basis of a coin in Hongkong, there! would appear to be other very important; points in favour of a coin similar to the Mexican Dollar, and in fact a repetition, under a new form, of the experiment essay- ed by the Mint, which as the Chairman of the Chamber of Commerce pointed out, there is good reason to believe would have com- pletely succeeded. If the plan proposed were carried out, any very violent change would be avoided, and it is quite possible that such a plan might be put in force by an arrange- ment between the Banks and the Govern- ment to share the loss which would arise upon cash balances in band in consequence of their having to be paid under the new system in cleau in place of chopped dollars. It may be interesting to note that it has been held by some competent legal meu that in strictness clean dollars can be demanded under the existing rule; but, however this may be, there is no doubt that it would be easy to make clean dollars only a legal tender; and this being once established, the question of introducing a new coin from home would resolve itself merely into introducing one of the same value and style as the clean Mexi- cau. One great advantage of the plan above suggested would be that there would be no necessity for discarding the clean Mexican Dollar as a currency until there had been Ample time to ascertain whether a per- manent and regular supply of the new coin could be obtained,

!