R. S. GUNDRY, Esquire,
Honorary Secretary,
S/E,
CHINA ASSOCIATION,
[ENCLOSURE.]
THE CHINA ASSOCIATION IN SHANGHAI,
LONDON.
February 10th, 1893,
A general meeting of the members of the China Association in Shanghai was held on the 23rd of January; and among other subjects for consideration was the probable effect upon foreign trade in the Far East of the adoption by India of a gold standard, and the close of the Indian Mints to further rupee coinage. In the result, the newly-elected Committee was deputed to frame a resolution to be forwarded to you, with a short statement of the principal grounds upon which the resolution is based. The Committee, realising the urgency of the matter, have given to it the consideration the limited time at their disposal permitted; and have agreed upon the following resolution :-
"That the Local Committee of the China Association in Shanghai request the China Association in London to watch all proposed legislation in connection with gold and silver, especially measures exclusively relating to India for the establishment of a gold standard there, and the close of the Mints: action which, in the opinion of the Local Committee, must be highly prejudicial to commerce in the Far East."
In support of this resolution the Local Committee beg to lay before the Association the reasons on which they rely.
I.--China, Japan, and generally all countries east of British India, are silver monometallic; silver retaining its value as a standard for all commodities except those imported from gold monometallic nations.
II.--With the opening of China to foreign commerce British subjects acquired interests which appeal for protection to the Imperial Government equally with the interests of their fellow subjects resident in the Indian Empire. The settlement of British subjects in Treaty Ports and Crown Colonies has necessitated large expenditure in land and buildings, and the establishment of indispensable adjuncts of trade in the form of Banks, Insurance, Shipping, Dock, Wharf, Warehouse, Land, Building and Industrial Companies of various kinds, employing a vast amount of capital; all of which is imperilled by the threatened demonetization of silver in India, which will virtually be the outcome of exclusive currency legislation for that Empire; legislation which must inevitably injure that portion of British enterprise and commerce founded and fostered under the treaties of trade and commerce made by Her Britannic Majesty's Government with the nations of the Far East, which is dependent upon silver as currency.
III.--Whatever may be the eventual results, it is certain that trade, which has taken years to build up, must be seriously disturbed without compensating advantages: whereas if the ratio of the currencies in use in India be established by general international consent, instead of being confined to India, trade between China and India will not be disturbed; the quantity of silver will be always the same, while exchange will be governed by the usual conditions.
IV.--The appreciation of gold in Great Britain has tended surely and steadily to divert the supply of certain cotton manufactures for Chinese consumption from Great Britain to British India; the variations in exchange between the latter country and China, both silver-using countries, being confined within a known range.
V.--The preceding paragraphs point more especially to the injury which the isolated action referred to will entail upon British interests in China. Other results, affecting identical interests in India and China, must follow.
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R. S. GUNDRY, Esquire,
Honorary Secretary,
SIE,
CHINA ASSOCIATION,
[ENCLOSURE.]
THE CHINA ASSOCIATION IN SHANGHAI,
LONDON.
February 10th, 1993,
A general meeting of the members of the China Association in Shanghai was held on the 23rd of January; and among other subjects for consideration was the probable effect upon foreign trade in the Far East of the adoption by India of a gold standard, and the close of the Indian Mints to further rupee coinage. In the result, the newly-elected Committee was deputed to frame a resolution to be forwarded to you, with a short statement of the principal grounds upon which the resolution is based. The Committee, realising the urgency of the matter, have given to it the consideration the limited time at their disposal perinitted; and have agreed upon the following resolution :-
"That the Local Committee of the China Association in Shanghai request the China Association in London to watch all proposed legislation in connection with gold and silver, especially measures exclusively relating to India for the establishment of a gold standard there, and the close of the Mints: action which, in the opinion of the Local Committee, must be highly prejudicial to commerce in the Far East."
In support of this resolution the Local Committee beg to lay before the Association the reasons on which they rely.
1.--China, Japan, and generally all countries east of British India, are silver monometallic ; silver retaining its value as a standard for all commodities except those imported from gold mono- metallic nations.
II.-With the opening of China to foreign commerco British subjects acquired interests which appeal for protection to the Imperial Government equally with the interests of their fellow subjects resident in the Indiau Empire. The settlement of British subjects in Treaty Ports and Crown Colonies has necessitated large expenditure in land and buildings, and the establishment of indispensable adjuncts of trade in the form of Banks, Insurance, Shipping, Dock, Wharf, Warehouse. Land, Building and Industrial Companies of various kinds, employing a vast amount of capital; all of which is imperilled by the threatened demonetization of silver in India, which will virtually be the outcome of exclusive currency legislation for that Empire; legislation which must inevitably injure that portion of British enterprise and commerce foundered and fostered under the treaties of trade and commerce made by Her Britannic Majesty's Government with the nations of the Far East, which is dependent upon silver as currency.
III-Whatever may be the eventual results, it is certain that trade, which has taken years to build up, must be seriously disturbed without compensating advantages: whereas if the ratio of the currencies in use in India be established by general international consent, instead of being confined to India, trade between China and India will not be disturbed; the quantity of silver will be always the same, while exchange will be governed by the usual conditions.
IV. The appreciation of gold in Great Britain has tended surely and steadily to divert the supply of certain cotton manufactures for Chinese cousumption from Great Britain to British India; the variations in exchange between the latter country and China, both silver-using countries, being confined within a known range.
V. The preceding paragraphs point more especially to the injury which the isolated action referred to will entail upon British interests in China. Other results, affecting identical interests in India and China, must follow.
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