CO129-286 - Acting Governor Major Gen Black Governor Sir Blake & Public Offices - 1898 [11-12] — Page 628

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has been appreciation of the subsidiary tokens which are

termed "cash". These tokens are issued from the Chinese

mints: but they are not supplied in sufficient quantities to meet the popular demand: and as, moreover, they consist of copper, often mixed (in varying proportions) with sand and gravel, disputes not infrequently arise as to their value. Under these circumstances a portable coinage of undoubted genuineness, such as the subsidiary currency of Hong Kong, is

ikely to be in considerable demand: and My Lords presume that

his currency circulates at a premium on the mainland of China. 'hey would be much obliged if the Secretary of State would :ause Them to be furnished with information on this point.

If this explanation is correct, it would not be

racticable or desirable to hamper the trade of Hong Kong by

efusing to supply it with token coins: and the presumption is

hat China will continue to absorb these tokens for many years

0 come. If at any time the Chinese Government should issue

ts own tokens in excess, and attempt to drive out the Hong ong tokens, it will always be open to the Colonial Government

o defend itself by demonetising all its subsidiary coinage

ssued before a certain date. The Secretary of State, however,

ill probably consider it unnecessary to mention this possi-

ility at present to the Colonial Government.

The preceding remarks may serve to explain some of

he points on which Mr Chamberlain proposed to consult the

olonial Government. There can be no objection to obtaining

eturns from the Governor of Hong Kong as to the imports and

xports of that colony: but Their Lordships direct me to

bserve that the interpretation of statistics relating to the

balance of trade" is so full of difficulties that such returns

re apt to be most misleading. To take one example, remit-

6-10- 621 remittances of coin made by Chinese labourers in Hong Kong to their relatives in China, would not be balanced by any corresponding item under the head of imports.

On the other hand it might be worth while to enquire to whom and on what terms the subsidiary coin is issued in the first instance, whether it is frequently melted down, or used as buttons &c, on its arrival in

China, and what the state of the "cash" currency is in the neighbourhood of Canton.

I am,

Sir,

Your obedient servant,

EnAmrittan

tances