613
Mackay which gave rise to the present consideration of the
matter, in Sir Ernest Satow's Despatch and in the letters
from the Bank Managers enclosed in that Despatch, the sub-
-ject is regarded from the standpoint of British prestige
in China and from that point it is no doubt better that a
good coin bearing on its face an indication of its British
origin should circulate in China rather than a coin of
inferior workmanship from Mexico. But the very fact that
the British coin is superior means that it costs more and
some one has to pay for this difference in cost. In the
past the Indian Government paid by charging only one per
centum seigniorage. They were willing to do this as long as
their own coinage requirements did not at times fully oc-
-cupy the mint establishments they had to keep up. Now that
their mints are generally fully occupied they, having no
special interest in British trade and prestige in China,
decline to continue the coinage except on condition of
deriving a profit from it. It should be noted in this con-
-nection that in the Government of India's: Despatch No. 82
Jo
dated the 16th. April, 1903, received here with Mr. Chamber-
166st Traits
03
-lain's Confidential Despatch of the 22nd. May,
1903,
it
was not contended that the 1 per centum seigniorage involved
loss
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