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possible loss in exchange while the goods are in
transit to Hongkong but this can always be guard-
-ed against by forward contracts. It does not
appear that a gold standard in Hongkong will after
all benefit the importer who in the end disposes
of his goods to Chinese buyers in silver.
If in consequence of a change in our cur-
rency, a merchant in Hongkong is forced to con-
-duct his transactions on a gold basis it will
only be a question of time, when through keen
competition trade will be transferred to sur-
rounding ports, where the native buyer cm deal
direct with the importer in a mutual currency.
The change would in all probability come very gradually more particularly at the first, but
it would come. The result would be that some
firms at all events, would finally close their
houses here, transferring to canton or elsewhere
where they could deal direct with the Chinese on
equal terms so far as currency is concerned.
1
The alternative is that the importing:
houses and banks should keep their accounts in
Hongkong in both gold and silver.
waste of energy
-
A needless
costing an unnecessary amount
in increased clerical labour which would benefit
no one.
Regarding Exports, were a gold currency
established in this Colony, the greater propor-
-tion of the bargaining and financing would, I
believe, also be transferred to outlying ports.
Our largest export market is in canton
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