CO129-265 - Public Offices & Others - 1894 — Page 493

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adapt itself to the serious decline in the gold price of silver

There

that has resulted from the close of the Indian Mints. has ensued a scarcity of Mexican dollars which has seriously reduced the circulating medium, as the Hongkong dollar is now practically out of circulation; and it is felt that a dearth

currency.

of

^ might at any moment result.

The Straits Settlements have met the difficulty, in a

measure, by legalising the Japanese yen: but that expedient is viewed with disfavour in Hongkong, where a strong feeling exists that the time has come for the introduction and goinage of a British dollar similar in weight and fineness to the coina

which are already legal tender.

It is understood that the Indian Authorities will under-

take to Kint such a coin for a seigniorage of about 1 X; and

it is believed that the project meets with the approval of the

British communities at the various points of circulation in

Eastern Asia.

The Committee can, therefore, have no hesitation in ex-

pressing their conviction that the time has come for introducing

a British dollar which would not only be legal tender in our

Eastern colonies but would obtain, probably, a large circula-

-tion in adjacent districts. It appears to them inconsistent

with the growing importance of our commerce in the Straits and

Hongkong, that those Colonies should have to rely for currency

on an uncertain supply of foreign coins; and the position

would hardly be amended from the point of view of national

prestige, if a French dollar were superadded, as seems not im-

possible, to the Mexican dollar and the Japanese yun.

1

I have the honour to be,

Your Lordship's obedient servant,

2

ReGundry

Hm. 126. Chania Consociatene

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