Inclosure 6.
278
C. O.
The Daily Press.
HONGKONG, JANUARY 19TH, 1894.
A BRITISH DOLLAR FOR THE FAR EAST.
ITS COINAGE RECOMMENDED BY THE SPECIAL COMMITTEE OF THE CHAMBER OF COMMERCE.
The following report by the Special Committee appointed by the Chamber of Commerce to consider the expediency of coining a British dollar has been forwarded to us for publication.
Hongkong, 18th January, 1894.
The Chairman, Hongkong General Chamber of Commerce,
Dear Sir,-We, the undersigned, were appointed a Committee, pursuant to a resolution of a special general meeting of the Hongkong General Chamber of Commerce, held on the 12th July, 1893, "to enquire into and report on the desirability, in the interests of trade, of the coinage of a British dollar equal in weight and fineness to the Mexican dollar, for circulation in the colony of Hongkong concurrently with the dollars which are now legal tender," and we have now, after full enquiry and consideration, to report as follows:-
We find that the Mexican dollar and the Hongkong Government dollar are the only legal tender in the colony, and that the supply of Mexican dollars in the London and American markets has very considerably diminished during the past six months. This is chiefly due to the heavy fall in the gold price of silver since the closing of the Indian Mints to the free coining of silver on the 26th June, 1893, and to the repeal of the Sherman Act in the United States on 21st October last. The Mexican exchange has been unable to adapt itself to the serious decline in the price of silver, Mexican dollars continue extremely scarce, insufficient for the requirements of the trade of the Colony, and there is no likelihood of any increase in the supply under present circumstances. The scarcity of Mexican dollars has seriously reduced the circulating medium in Hongkong, has been highly inconvenient and may very easily at any moment become dangerous. The Hongkong Government dollar is now practically out of circulation, and appliances no longer exist for the coinage thereof.
The Japanese Government have on 16th October last, under Imperial Ordinance No. 103, appointed a Committee of Currency Investigation to enquire into the origin and general results in the relative value of gold and silver, the effects produced thereby upon the economy of Japan, "whether any change should be made in the present currency system of Japan, and if such change be considered necessary, what currency unit should be adopted." What this committee may report it is impossible to say; it may decide to recommend to discontinue the coinage of Japanese yen. In that case, we are of opinion that it would be most expedient to recommend the legalization of the Japanese yen in Hongkong at present, in view of the great uncertainties which exist in connection therewith.
From enquiries made of the Mint Master in London, it appears that his appliances, without costly additions, would not allow of his undertaking the coinage of a British dollar at all times, while the seignorage charged by the Mint authorities in Birmingham would be so costly, for the present, as to be practically prohibitive.
We are given to understand the Indian Government is prepared to coin a British dollar at the Bombay Mint, and that the charge for seignorage will be 1 per cent, or thereabouts.
Under the circumstances we are clearly of opinion that it is imperatively necessary in the interests of the trade of the colony, and otherwise, that immediate action should be taken in the direction of the coinage and legalization of a British dollar, equal in weight and fineness to the Mexican dollar, for circulation in the colony of Hongkong concurrently with the dollars which are now legal tender.
We are, dear sir, your most obedient servants,
J. J. KREW UK..
H. JACKSON.
N. CHATER.
J. HURBURN
T. H. WHITE HEAD.
RECEIVED
3995
6 MAR 34
Feb.
Inclosure 6.
278
C. O.
The Daily
Press.
HONGKONG, JANUARY 19TH, 1894.
A BRITISH DOLAR FOR THE FAR EAST.
ITS COINAGE RECOMMENDED BY THE SPECIAL COMMITTEE OF THE CHAMBER
OF COMMERCE.
The following report by the Special Commit tee appointed by the Chamber of Commerce to consider the expediane, of colving a Betish dol- lur has been forward a so us for publication ****
Hongker, 18th January, 1894. The Chairmau, Hoogkong General Chamber
of Commerce,
Dear Sir.-We, the undersigned, wore an- pointed a Committee, pursuant to a resolution of a special general meeting of the Hougkung General Chamber of Commerca, held on the. 12th July, 1893, "të enquire into and report onj the desirability, in the interests of trade, of the coinage of u British doilar equal in weight. and fiueness to the Merican dollar. for eirenla tien in the colony of Hongkong empurreativ with the dollars which are now legal tender," and we have now, aft-; fall erqu cy and con- sideration, to report as 'allows:-
We find that the Mexion dollar and the Hongkong Government dollar are the only legal tender in the cotty, and that the supply of Mexican dollars in t'u oudon and American markets has very considerably diminished day- ing the past six monti This is chiefly due to the heavy fall in the gold price of silver since j the closing of the Indian Mints to the free! enining of silver on the 26th June, 18-3. and to the repeal of the Sherman Act iu the United States on 21st Octobar last. The Maxican exchange has b-on nuable to adapt itself to the serious decline in the price of silver, Mexican dollars continue extremely searce, insufficient for the requirements of the trade of the Colony, and there is no likelihood of any increase in the supply under present eir- cumstances. The scarity of Mexican dollars has seriously reduced the rirenlating medium in Hongkong, has been highly inconvenient and may very easily at any moment became danger. ons. The Hongkong Government dolle is dow practically out of circulation, and appliances no longer exist for the coinage thereof.
The Japanese Government have on 16th October last, under Imperial Ordinance No 103, appoicted 3 Committee of Currency Investigation to enquire into the origin and general results in the ra- | lative value of gold and silver the feet pro- duced thereby upon the economy of Japan. Í "whether any ch uge should be inado in the present currency system of Japan, and if snob change be considered necessary, what currency "unit should be adoptec," What this committee may report it is impossible to say; it may decide to recommend to discontinue the coinage of Japanese yen. In a case, we are of opinion that it would be most frexediant to recommend the legalization of the Japanese yen in Hong-i kong at present, in view of the great uncertain- ties which exist in connection therewith
From enquiries made of the Mint Master in London, it appears that his appliances, without costly additions, would not allow of his under- taking the coinage of a British dollar at all times, while the seizaorage charged by the Mint authorities in Burmingham would he so costly, for the present, cs to be practically pro- hibitive.
We are given to understand the Indian Go- vernment is prepared to coin a British dellar at the Bombay Mint, ard that the charge for seigtorage will be 1 per cent, or thereabouts.
Under the circumstances we are clearly of opinion that it is impertively necessary in the interests of the trade of the colony, and other- wise, that inmedista action should be taken in the direction of the coinag and legalization of a British dollar, equal in waight and fineness to the Mexican dollar. for erenlation in the colony of Hongkong concuri ofly with the dollars which are uw lagal tender. We are, dear sir, your most obedient servants,
J. J. KRSW UK..
". JACKSON.
(2. CHATER.
J. HURBURN
T. II. WHITE HEAD.
RECE
3995
¡PEG 6 MAR 34
Feb.
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