CO129-260 - Governor Sir Robinson Acting Governor O-Brien - 1893 [9-12] — Page 383

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Enclosure

SPEECH OF HIS EXCELLENCY THE GOVERNOR (SIR WILLIAM ROBINSON, K.C.M80

AT THE RE-ASSEMBLING OF THE LEGISLATIVE COUNCIL

OF HONGKONG, 4TH DECEMBER, 1893.

C. 0.

HONOURABLE GENTLEMEN OF THE LEGISLATIVE COUNCIL,

484

of 84 94

In meeting you again for the resumption of our legislative duties I am not in a position to announce to you any very marked improvement in the financial condition of the Colony. In November last year I expressed a hope that there might be a revival of prosperity in the fortunes of Hongkong during 1893, but although there are not wanting unmistakeable signs of better times in the future, that hope has not been realized to the extent that I anticipated. The Indian Silver Act and the proceedings of the United States Senate in reference to the Sherman Act have naturally affected the business of this Community as well as the business of the entire East. The dollar has fallen to an unprecedentedly low value, and the loss by Exchange in many of the transactions of this Government has, of course, been considerable.

Recently we have certainly not been troubled by many fluctuations in the rate of Exchange, and with the dollar at 2/4 or thereabouts, as it has been for the last 3 or 4 monthe, we may hope that silver has "touched bottom," and that a permanent rise in value may be the next change. But with the uncertainty that still surrounds this intricate and difficult question we cannot look for any early inthux of capital into the Colony, or for any great increase in business unless some fixed international ratio should be established.

As the President of the United States recently observed, "what we want is good, sound "and stable money and a condition of confidence which will keep it in use.' As the standard

of value in a portion of the world is silver, and in the other part is in gold, commerce requires

a steady par of Exchange between Gold and Silver.

There is, however, one point in connection with this subject to which I would call particular attention, and that is, that the fall of silver and the action of the Indian Govern- ment in regard to it, besides having improved the position of the tea-grower and exporter, has put new ventures, and profitable ones, within the reach of capitalists in China and Japan, as well as in this Colony. The Chinese are slow to begin anything new,

but if the present state of affairs continues they will be compelled to produce and export many articles which they have hitherto imported from European and other countries.

The Japanese are quite alive to the situation so far as it concerns them, and are not only erecting new Cotton Mills, to the number of 20 it is said, but are about to take the Import Duty off Raw Cotton. It is possible therefore that we may soon see Japan, for a time, supplying China with goods which she formerly obtained from Europe or India. It seems anomalous that whilst England should be striving to extend her commerce and com- mercial relations in China on the one hand, she should on the other be countenancing measures which apparently have the effect of creating competition against herself and her own produc- tions in the East.

Under these circumstances the attention of the Community should be directed to the desirability of establishing Cotton Mills in Hongkong. The Government is in possession of several eligible sites, and if only capitalists, either European or Chinese, will come forward and invest their capital in such enterprises I will endeavour that so far as the acquisition of Jund is concerned they shall be treated with exceptional liberality. The success which has attended other efforts of this nature in Hongkong ought, under these favourable circum- stances, to lead to the introduction of additional local Industries, such as Cotton Spinning and Weaving, and no more fitting time than the present seems likely to occur. This matter is worthy therefore of the earnest consideration not only of this Community, but of capitalists in the neighbouring provinces in China.

In connection with the fall of silver and the scarcity of the circulating medium in Hong- kong and elsewhere in the East, it is probable, unless the Japanese Yen is made a legal tender, that action will shortly be taken in the direction of the coinage of a British Dollar. I under- stand that some of the Banks are in favour of this step, and that they have arrived at their conclusion in consequence of the lengthened period during which the Mexican Exchange has been unable to adapt itself to the fall in the price of silver. Should any application from the Banks in Hongkong urging the coinage of, and introduction into the Colony, of a British Dollar be received by the Government, I will use all my influence with the Home Government in support of that request.