478
The Indian Currency Question and Trade with China
SIR,
and Japan.
CHINA ASSOCIATION,
31, Lombard Street,
6th April, 1893.
In pursuance of my letter of the 9th February I have now the honour to submit, for the consideration of Her Majesty's Government, a letter from the Shanghai branch of this Association giving reasons for believing that the proposed close of the Indian mints would have a calamitous effect on the interests of British commerce, not only in China but throughout Eastern Asia. For, although the magnitude of the China trade gives it natural prominence, Japan, Hongkong, the Straits Settlements, and every centre of British trade in the silver-using countries of Asia are equally concerned.
The question presents itself under two aspects :----
1st.-Trade between Eastern Asia and India.
2nd-Trade between Eastern Asia and England and the rest of the Empire.
The Shanghai Committee invite special attention to the rapid growth in the import of Indian yarn, which has reached a total of 67,000 tons, valued at nearly Tls. 20,000,000, while the import of yarn from England remains nearly stationary at about 4,000 tons. Considerations of staple and suitability have doubtless had their effect in producing these results, but the steady level of exchange between two silver-using countries has unquestionably been an important factor.
To close the Mints of India to silver, or to establish a gold currency, would be to abolish the advantage which she now possesses, and to place her manufacturers at the same disadvantage of a varying exchange by which the Manchester manufacturer is already handicapped. One of two results would probably follow. Either China—which is a large grower of cotton, and possesses ample area suited to its extended cultivation—would be encouraged to erect machinery and spin her own yarn, or she would transfer her custom to Japan which is rapidly developing a great manufacturing industry.
The reflection can hardly fail to suggest itself that the Opium trade would be affected by similar considerations, with the probable effect of stimulating production in China and Persia, and hastening improvement in the manufacture of Chinese opium to meet the luxurious demand for superior quality which the better-prepared Indian drug at present supplies.
Neither must the consideration be lost sight of that the trade between India and China is remarkably one-sided. The exports of yarn and opium alone, from India
To the Secretary to the Treasury,
Treasury Chambers,
Whitehall.
)
478
The Indian Currency Question and Trade with China
SIR,
and Japan.
CHINA ASSOCIATION,
31, Lombard Street,
6th April, 1893.
!
In pursuance of my letter of the 9th February I have now the honour to submit, for the consideration of Her Majesty's Government, a letter from the Shanghai branch of this Association giving reasons for believing that the proposed close of the Indian mints would have a calamitous effect on the interests of British commerce, not only in China but throughout Eastern Asia. For, although the magnitude of the China trade gives it natural prominence, Japan, Hongkong, the Straits Settlements, and every centre of British trade in the silver-using countries of Asia are equally concerned.
The question presents itself under two aspects :----
1st.-Trade between Eastern Asia and India.
2nd-Trade between Eastern Asia and England and the rest of the
Empire.
The Shanghai Committee invite special attention to the rapid growth in the import of Indian yarn, which has reached a total of 67,000 tons, valued at nearly Tls. 20,000,000, while the import of yarn from England remains nearly stationary at about 4,000 tons. Considerations of staple and suitability have doubtless had their effect in producing these results, but the steady level of exchange between two silver-using countries has unquestionably been an important factor.
To close the Mints of India to silver, or to establish a gold currency, would be to abolish the advantage which she now possesses, and to place her manufacturers at the same disadvantage of a varying exchange by which the Manchester manufacturer is already handicapped. One of two results would probably follow. Either China- which is a large grower of cotton, and possesses ample area suited to its extended cultivation-would be encouraged to erect machinery and spin her own yarn, or she would transfer her custom to Japan which is rapidly developing a great manufacturing industry.
The reflection can hardly fail to suggest itself that the Opium trade would be affected by similar considerations, with the probable effect of stimulating production in China and Persia, and hastening improvement in the manufacture of Chinese opium to meet the luxurious demand for superior quality which the better-prepared Indian drug at present supplies.
Neither must the consideration be lost sight of that the trade between India and China is remarkably one-sided. The exports of yarn and opium alone, from India
To the Secretary to the Treasury,
Treasury Chambers,
Whitehall.
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