358
22. It follows that, before subsidiary coin can become worn, it must have passed from hand to hand at a constantly decreasing value. The last holder would lose nothing by the refusal of the Government to redeemn a doubtful coin at par; even a speculator would lose nothing, for he would have bought up the coin at its current value.
23. Money, as money, has no existence in China. At home a baker sells a sixpenny loaf for sixpence, and only asks that the coin, however old, shall be genuine. In China, however, there are two elements to every bargain, (i) the price of the goods, (ii) the price of the currency.
24. Bronze cash are the only coined money of China. They all appear to date from the reigns of the earlier Emperors of the present dynasty, and they are naturally much worn and broken, as they get much knocked about. Nominally 1,000 go to the Tael, but nobody ever thinks of accepting them at anything but the market price, which varies from day to day, and according to the condition of the coin. That there should be a government department anywhere which would give a tael of pure silver for any thousand cash tendered to it would strike a Chinese trader as an altogether amazing state of things. The Chinese Government would certainly not redeem these coins, nor accept them in payment of dues.
25. It will be seen therefore that Chinese on the mainland of China do not
expect or count upon the redemption of subsidiary coins at their par value. They take them, as they do other coins, for what they will fetch in the open market. Japanese coins, inferior in intrinsic value to our own, circulate freely in the north of China, where the people who take thein cannot be supposed to rely on any means of getting them redeemed in Japan.
I have the honour to be,
Sir,
Your most obedient Servant,
The Honourable F. STEWART,
Acting Colonial Secretary,
&livy
&&..
&c.
No. 17.
SIR,
(13)
ALFRED LISTER,
Treasurer.
TREASURY, HONGKONG, 17th May, 1887.
I have the honour to request that the Crown Agents may be directed to obtain and forward to this Colony $150,000 worth of Subsidiary Silver Coin in the following proportions:--
20 Cent pieces,..
10 5
17
>
"}
Copper,.
10 per cent.
60
"}
30 Nil.
>>
These coins are needed in addition to the supply of $150,000 worth indented for on February 17th, and, as they will be due here about the time of the Chinese New Year, I trust nothing will be allowed to stand in the way of their being
I have the honour to be,
sent out.
Sir,
Your most obedient Servant,
A. LISTER, Treasurer,
No. 8.
SIR,
TREASURY, February 17th, 1888.
I have the honour to acknowledge the receipt of your letter No. 211 of the 14th instant, referring to me for report the Secretary of State's Despatch No. 239 of December 27th, 1887, on the subject of the balances to be kept in this Colony.
2. The balances on fixed deposit are at present as follows:-----
Hongkong and Shanghai Bank, Chartered Bank of India,..
New Oriental Bank,.
.$150,000
50,000 100,000
$300,000
3. All but the first of these will shortly be drawn to pay the Crown Agents' drafts, so that in that respect the directions of the Secretary of State will be carried out within a few weeks.
4. I beg to point out, with great deference, that the limit fixed in the Despatch under report is so low as to entall the most serious and inevitable embarrassment on this Department in its practical working. During the month of January the Treasury paid away no less than $172,000. During the first fortnight in February we paid $165,000. And a draft from the Crown Agents for $225,000 is shortly due. That amounts to $562,000 required within two months. Now, even allowing for the steady incoming of Revenue during the whole period, a floating balance of $200,000 is not enough, when payments have to be made on this scale. I would respectfully ask permission to keep on fixed deposit a sum not exceeding $200,000, and on current account a sum not exceeding $150,000, making a total margin of $350,000, which is the very least on which I can undertake to carry on the financial business of the Colony without undesirable interruptions.
5. I venture to observe that, if it is desired to keep the balanco in this Colony as low as possible, there is an easy, and at the same time in every way advantageous way of accomplishing this. All that is necessary is a liberal supply of subsidiary silver coin. If the Crown Agents are instructel to send out $250,000 worth every quarter, until further notice, there will be no reason to complain of any accumula tion of balances in this Colony, nor will there, I hope, be a recurrence of the discreditable and distressing scarcity of coin which has been prevailing for the last month. On Saturday last five cent pieces sold in the town for seven times their par value ($700 for a hundred dollars worth) and ten cent pieces at four times their par value.
*
6. The Government was twitted, at a recent meeting of the Legislative Council, with indifference in not providing sufficient coin for the commonest daily wants of the Colony, and Lord DERBY'S Despatch No. 72 of March 20th, 1881, was quoted as a proof of this. In that Despatch His Lordship said, As to the deficiency of subsidiary coins I need say nothing, as your Government has the remedy in its own hands.” I trust I do not presume too far in saying that we have not had the remedy in our own hands. It is true that no requisition for coin has been actually refused, but the coins have been supplied with such obvious un- willingness and evident distrust that I have never sent in a Requisition without feeling that it probably would be refused. Had I really had the matter in any own hands, I should have requisitioned for at least double the amount of coin I have actually asked for.
7. In conclusion I would point out that, whilst the best interest we ever got on funds deposited at home is 44%, subject (as are also our remittances home) to charges for brokerage, we obtain 5% in this Colony, and never pay anything for brokerage under any circumstances. The plan I have suggested as to coins would do with
away
loss to the Colony thus arising.
I have the honour to be,
Sir,
any
Your most obedient Servant,
The Honourable F. STEWART, LL.D.,
Acting Colonial Secretary,
30.
&c.
**It is right to state that the Coins referred to above arrived in November last, and, the Treasury having been entirely depleted by the Jubilee demand, they were very quickly absorbed. The Invoice of $150,000 now expected was ordered on August 17th, 1887.
12
The Honourable F. STEWART, LL.D.,
Colonial Secretary,
&c.,
3...
$c.
A. LISTER, Trensarer,
13
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