Page 353
HONGKONG, JULY 18TH, 1893.
HONGKONG GENERAL CHAMBER OF COMMERCE.
THE CURRENCY OF THE COLONY. RECOMMENDATION TO LEGALISE THE JAPANESE YEN.
A special meeting of the members of the Chamber of Commerce was held yesterday at the City Hall for the purpose of discussing the desirability of recommending the Government to make the Japanese yen a legal tender in Hongkong, and further to urge the adoption of the necessary measures for the coinage of a British dollar. There were present Messrs. J. J. Keswick (Chairman), A. G. Wood, N. J. Ede, R. M. Gray, C. Jantzen, H. H. Joseph, J. H. Scott, T. H. Whitehead (Committee), T. Jackson, J. J. Francis, L. Mendel, J. H. Garrels, Q. Sharp, B. Byramjee, Gustav von Wille, J. S. Lapraik, E. R. Belilios, J. S. Moses, D. R. Sussoon, W. H. Gaskell, E. F. Alford, A. McConuchie, C. J. Halliday, W. R. Loxley, V. A. C. Hawkins, F. Seip, F. Henderson (Secretary), and others.
The CHAIRMAN said—Gentlemen, the disturbance to all financial affairs throughout the world consequent upon the action of the Indian Government in declaring a gold standard of value in that Empire, and the influence upon exchanges generally which has ensued, has been felt as much in Hongkong and in the trading ports of China as in any other places. When it became known here that the Viceroy's Council was sitting in Simla last month to decide upon the recommendations of Lord Herschell's Committee, this Chamber forwarded to His Excellency the Viceroy a telegram deprecating any action tending to injure the trade between India and China, and mentioning that anticipations were already paralyzing business. Similar messages were sent by bankers and merchants, and I believe by the Hongkong Government, but the replies, as you are aware, were practically that "the matter was settled." For the present we are in the dark as to the precise recommendations of the Herschell Committee, but their result has been such as to cause the enactment of a policy in India which, with the information before us, seems unlikely to be to the benefit of the people of that country at large or of the British mercantile, manufacturing, and planting communities there who have done so much, especially within the last ten years, to promote the wealth and general prosperity of that dependency.
The adoption of a gold standard, in other words the protection of the rupee and the non-protection of the dollar, has had its natural effect, and we have seen silver for the first time in the world's history worth only 30 pence an ounce, and the value of the dollar in Hongkong at less than half-a-crown. Great silver-producing countries like America and Mexico have not yet declared the measures they will adopt in consequence of India's financial policy, but from Mexico we have at least a note of warning which requires that in this distant Colony we should take such action as we can for our own protection and for the safeguarding of banking and trading interests.
For well-nigh half a century the Mexican dollar has been the coin at the Treaty ports of China and Hongkong, and latterly of The Straits Settlements, and we are able to fully appreciate the inconvenience which may arise if there should be any curtailment of its supplies in the absence of another token to meet the want thus created. It is for the purpose of considering what should be done to meet such a contingency that we are here to-day, and it is satisfactory to see such a good and representative attendance.
His Excellency the Governor, too, takes the deepest interest in the question, and has expressed a wish for your views as to making the Japanese yen a legal tender in Hongkong, and His Excellency will, I am sure, give the fullest effect in his power to the recommendation of this Chamber. When your Committee had this question under consideration a few days ago, they were, I think I may say, unanimously in favour of the Japanese yen being made legal tender here as the only immediate relief we can look for in the event of the supply of the time-honoured Mexican being inadequate to the requirements of the great and growing China trade in connection with which the banking facilities find a focus in Hongkong.
The yen is of at least equal value with the Mexican dollar, is highly appreciated by the Chinese, is an unusually handsome and well-finished coin, and I may say that its history for nearly twenty years has been in every respect satisfactory as to uniformity of value. Such being the case, I think I may venture to say that your Committee would be glad if this meeting would favourably view a recommendation to the Government that it should be made a legal tender.
The popularity of the coin, and the not unnatural desire of the enterprising and progressive Japanese Government to furnish the trading medium of the East, seem to indicate it as the most valuable auxiliary we can obtain if there is to be, as we fear, an uncertainty in the supply of the Mexican coin.
It is not the first time that this proposal has been before this Chamber. Our predecessors in the seventies recommended the Government to legalize the yen, but for some reasons with which I am unacquainted, possibly that there was no necessity at the time, no effect was given to the suggestion. But, gentlemen, if you recommend that the yen be made a legal tender, as it is hoped you may, it should be borne in mind that by many it will be deemed but half a measure of safety, and that there are those who consider that in order to obviate a recurrence of our present danger of a dearth of currency, we should have a dollar of our own, a British dollar, or a Hongkong dollar; a dollar, by whatever name you call it, of which the supply shall be regulated by our requirements.
Now, such a proposal is probably in every way commendable theoretically, but it opens up the great questions of cost of production and of ways and means, the chief desiderata in all undertakings! This is a point I hope this meeting will debate, and debate freely and fully, and if necessary appoint a special sub-committee to consider. The minting of a British dollar was, I believe, favourably considered by this Chamber in 1877, but I cannot trace that anything practical resulted.
In considering this suggestion, many will call to mind with regret that Hongkong once had a mint of its own and that they abandoned it hastily and sold their plant to our friends in Japan. It was a grievous error in the light of subsequent experience, as I doubt not that had the mint been continued a few years longer it would not only have been a satisfactory source of revenue to the Colony, but ere this would have supplied the China-Straits trade with its dollars and probably permeated the length and breadth of China, and we would not to-day be under the necessity of discussing how we are to avoid running dry in the event of Mexico stopping her silver coinage.
If there be those here, or in this Colony, who advocate re-establishing a mint in Hongkong, I say they must count the cost; the opportunities are not...
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الشجاعة
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The
Enclosure 6. 3. 10.15
Daily Press,
HONGKONG, JULY 18TH, 1893.
HONGKONG GENERAL CHAMBER OF COMMERCE.
THE CURRENCY OF THE COLONY. R: COMMENDATION TO LEGALISE THE JAPANESE YEN,
A special resting of the members of the Chamber of Commerce was baid yesterday at the City Hall for the purpose of discussing the do- sirability of recommending the Government to make the Japanese you a legal tender in Hong- kong, and farther to urge the adoption of the necessary measures for the coinage of a British dollar. There were present Messrs. J. J. Keswick (Chairman), A. G. Wood, N. J. Ede, R M. Gray, C. Jantzen, H. H. Joseph, J. H. Scott, T. H. Whitehead (Committee), T. Jack- son. J. J. Fraucis, L. Mendel, J. H. Garrels, Q. Sharp, B. Byramjee, Gustav von Wille, J. S. Lapraik, E. R. Belilios, J. 8. Mogos. D. R. Sus- soon, W. II. Gaskell, E. F. Alford, A. McCon- uchie. C. J. Halliday, W. R Loxley, V. A. C Hawkins, F. Seip, F. "Henderson (Secretary), and others.
The CHAIRMAN said-Gentlemen, the dis- turbance to all financial affairs throughout the world consequent upon the action of the | Indian Government in declaring a gold standard of value in that Empire, and the influence upon exchanges generally which has ensued, has beeon felt as much in Hongkong and in the trading ports of "bium as in any other places. When it became known here that the Viceroy's Council was sitting in Simla last month to decide upor the recommendations of Lord Horschell's Com- wittee, this Chambor forwarded to His Ex- cloney the Viceroy a telegram deprecating any action tending to injure the trade between India and Chins. and mentioning that auti. cipations were already paralyzing business. Similar messages were sent by bankers and merchants, and I believe by the Hougkong Go- vernment, but the replies, as you are aware, wers practically that "the matter was subtled.” For the present we are in the dark as to the precise recommendations of the Herschell Com. mittee, but their fesdit has been such as to cause the enactment of a policy in India which, with the information before us, seems unlikely to be to the benefit of the people of that country at large or of the British meresatile, manufacturing, and planting communities there who have done so much, especially within the last ten years, to promote the wealth and general prosperity of that depen lency. The adoption of a gold standard, in other words the protection of the rupse aud the uou protection of the dollar, has had its natural effect, and we have seen silver for the first time in the world's history worth only 30 pence an ounce, and the value of the dollar in Hongkong at less than half- x-crown. Great silver producing countries like America and Mexico have not yet declared the measures they will adopt in consequence of India's financial policy, hat from Maxico wa have at least a note of warning which requires that in this distant Colony we should take such
action as we can for our own protection and for the safeguarding of banking and trading in- terests. For well-nigh half a century the Merican dollar bas been the coin at the Treaty ports of China and Hongkong, and latterly of The Straits Settlements, and we are able to fully appreciate the inconvenience which may arise
if
353
if there should be any onrtailment of its sup- plies in the absence of another token to meet the want thus created. It is for the purpose of considering what should be done to meet such a contingency that we are here to-day, and it is satisfactory to see such a good and repre. sentative attendance. His Excellency the Go- vernor, too, takes the deepest interest in the ques. tiou, and has expressed a wish for your views as to making the Japaness you a legal tender in Hongkong, and His Excellency will. I am sure, give the fallost effect in bis power to the recom. mendation of this Chamber. When your Commit- too had this question under consideration a few days ago, they were. I think I may say, unanim usly in favour of the Japanese you being made legal tonder here as the only immediate relief we can look for in the event of the supply of the time- bonoured Mexican being inadequate to the requirements of the great and growing China trade in connection with which the banking facilities find a focus in Hongkong. The yen is of at least equal value with the Mexicau dollar, is highly appreciated by the Chinese, is an unusually handsome and well finished coin, and I may say that its history for nearly twenty
has been in every resprat yeara satisfactory as to aniformity of value. Such being the case, I think I may venture to say that your Committee would be glad if this meeting would favourably view a recommenda- i tion to the Government that it should be made!
a legal tender. The popularity of the coin, and the not annatural desire of the enterprising aui pogressive Japaness Government to furnish the trading melin of the East, seem to indicate it as the most valuable auxiliary we can obtain if there is to ha, as we fear, an uncertainty in the It is not the first supply of the Mexican coìn time that this proposal has been before this Cham- ber. Our predecessors in the seventies recom- mended the Government to legalize the yen, but for some reasons with which I am unacquainted. possibly that there was no necessity at the time, But, no effect was given to the suggestion. gentlemen. if you recommend that the yen bu mado a legal tender, as it is hoped you may, it should be borne in mind that by many it will be deemed but halt 2 measure of safety, and that there are those who consider in order to obviate a recarrouce of our present danger of a dearth of currency that we should have a dollar of our own, a British dollar, or a Hongkong dollar; a dollar, by whatever uame you call it, of which the supply shall be regulated by our requirements. Now, such a proposal is probably in every way commendable theoretically. bat it opens up the great questions of cost of production and of ways and means, the chief desiderata in all undertakings! This is a point T hope this meeting will debate, and debate freely and Enlly and if necessary appoint a special sub-com- uities to consider. The minting of a British dollar was, I believe, f vourably cousidered by this Chamber in 1877, but I cannot trace that anything practical resalted. In considering this gestion many will call to mind with regret that Hougkong once had a mint of its own and that they abandoned it hastily and sold their plaut to our friends in Japan. It was a grievous error in the light of subsequent experience, as I donht not that had the mint been continued a few years louger it would not only have been u satisfactory source of revenue to the Colony, but ere this would have supplied the China-Straits trade with its dollars and probably permeated the length and breadth of Chine, and we would not to-day bo under the necessity of discussing how we are to avoid running dry in the event of Mexico stopping her silver coinage. If there be those here, or in this Colony, who advocate re- establishing a mint in Hongkong. I say they must count the cost; the opportunities are not
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