CO129-288 - Public Offices & Others - 1898 — Page 119

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are held by the Chinese.

The old system of making large payments in chopped dol-

lars and fragmentary silver has been largely if not entirely dis-

carded, and the Chinese traders have not now the same supply of skilled

and experienced shroffs as they formerly bad.

The Chinese fully appreciate the relief which they enjoy

from the old and cumbersome form of dealing in silver in which they

suffered greatly from delay and squeezing in the shroffage, and

further from the point of view of portability there is no comparison

between the two as a circulating medium (so much is this acknow-

ledged that notes are now at 1% premium in Canton)

Our over-issue has been forced upon us by economic changes which the progress of Western ideas amongst the Chinese render stronger every day, and it will be a great blow to the whole trade of Southern China if we are compelled to inflict upon it.as

.a permanency the grave inconvenience of a contracted currency.

When the Straits Government commence issuing their notes

we will withdrex.our circulation from Singapore. and Penang,and the position here will be relieved, but in the meantime unless some permission for a slightly augmented.note issue be accorded to us the very greatest inconvenience will be experienced by the trading

community of this port.

I shall have the honor of bringing the whole Note Issue question before the Government of this Colony at an early date and

shall ask for such remedial measures as the case demands.

Again expressing regret that occasion should have arisen

requiring you to call our attention to this matter

I have the honor to be, fir.

Your obedient servant

GR. M. Gray

Accuchairmen.