L
a
I for
investment. A great deal is bere already in the shape of money advanced by banks who use their sterling deposits for that pur se, but that is often lost sight of., Another one or two million pounds would reduce interest to 3 per cent. or 4 per cent, so that the investment of savings would be considerably reduced as far as the rate of interest goes. It must not be forgotten that it is always a matter of free choice to every one as to whether they invest their savings iu gold or silver. If a man prefers to remit monthly or annually what be is able to save he can keep his capital in gold all the time, Or if he wishes to have money at band. he can remit half in gold and keep half in silver and so hedge against a big loss oving to falling exchange. That people have in many instances failed to take that very reasonable precaution is hardly a reason for a revolution in the standard of value, which many think would have greai elements of danger to the trade of the Colony. We are entirely different from a great produc- ing country which has exports of its own. If they like to saddle them with a high standard of ralus they have at least something to put the saddle OD; whereas aothing.
We have
If Shanghai and other ports are working. against us with a silver currency, it is reasonable to expect that they can put work through chesper thau we can with a gold one. Will not the tendency be for them to supply the needs of enstomers who always go to the cheapest market? It is practically as cheap to send goods from Shanghai to Amoy, Swatow, Foockow, and Formosa as from here, and might not these ports draw their supplies from there, instead of here? Have we even such a firm hold on Canton? Steamers of very considerable size can go to Whampoa, cr Lintin, or Namtao, and godowns for the storage of goods could very easily be erected there. Take the Japanese coal trade as another example, Coolies are largely used instead of machinery for handling this enormous trade, but if your coolies are paid in gold, surely nechanical appliances would replace them. Is there not even a risk that the trade might go a short way up the river, where silver still provailed and the thousands of coolies and many cargo-boats at present em- ployed leave the Colony for good?
The loan taxes would always remain for those left behind to pay.”
I approach the subject in the spirit of enquiry, but will any reasonable man say that there is no risk of these things happening? Take the Dock Co. Does not this suffer enough already from competition with Shang- hai? Would its position be improved by paying labourers iu gold?
Mr. Osborne said that Banks would receive their loans back at the breaking-up price of the discredited and disestablished dollar. But would Banks wait for that unhappy p sition? It is well to remember that Banks are merely aggregations of capital subscribed by
those who have money to enable people of energy and ability to trade, who bave insufficient capi
over a ques-
tal to do all the trade they wish to. The benefit is a mutual que. If an injustice is being worked would Banks and their trading customers not tend to separate tion of this sort? But the bankers and the chief traders are found in the same camp! Banks may be very liberal; but they have shareholders and depositors to protect; and would it not be possible that if they foresaw a movement to treat them in the way foreshadow- ed by Mr. Osborne, that they would call up their loans? Might not this produce a forced realisation of securities which would render the proposed change a curse rather than a blessing? or, they would offer their debtors the alternative of changing debts into gold debts at an ex- change and interest which the Banks would chose, not the debtor. Would those baving: overdrafts feel any happier with a guld debt at 6 per cent, and the
value of money falling owing to importations of home money absorbing anything good in investments, and content with 4 per cent.? the way of That the banking interesus would have to move to a closer point of contact with the Chiness is generally admitted.
Let them go,
say some. But that means a withdrawal of capital, and men with brains and money will leave the place. Where is the Colony's ad- vantage in that?
That Hongkong will always remain a place of great importance from the Imperial standpoint is beyond question whatever currency legisla tion may be enacted. But will it continue to throb with its present activity, and will its streets re-echo with a hurrying maltitude beat on peaceful avocations? Some men who are not entirely foolish think in this separa- tion from China there is grave risk, and their opinious are worth some consideration. The e may be those who are hopeful enough to think that England will give us the money to effect this change; but why should she? There are more trading Englishmen in China oat of Hongkong than in it, and
it does not matter to people at home at what port the Empire's China trade is done as long it is done. If home articles are sold in Shanghai or Amoy the home operative is as nell employed as if they are sold here, China commodities are sout home as required, the port of shipment is a matter of indi rence to the consumer, and it has never been England's principle to give bonuties to her colouies,
If
Tais is not a question to be lightly decided; and to legislate from a feeling of irritation. bowerer annoying the causes, is a thing to be av. ided. By what magic power can we sow a crop in silver and reap the harvest in gold? Let us be careful that we are not led by a will-o-the-wisp into a position where cou- fusion may become worse confounded.”
Perhaps if some of your readers have patience to wade through this lengthy statement they may be able to demonstrate to the "Doubters that the light which the "Reformers" hold up is a true one.-Yours, etc.,
G. STEWART.
589
598
No comments yet.
Private notes are available after approval.