CO129-329 - Governor Nathan - 1905 [7-12] — Page 618

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loss but only that it barely met expenses and that the 2

per centum seigniorage was based on the coinage of rupees

for the public before the mints were closed. Now that the

Government of India has declined to coin for China except

at a profit it has been suggested that the difference in

value between the British and Mexican dollars should be

defrayed either by the mints in England or by a mint in

Hongkong. With a one per centum seigniorage which appears

to be the maximum which will admit of successful competi-

-tion by the British dollar it is doubtful whether the

mints in England could afford to undertake the coinage

except under similar conditions to those in which it was

carried out by the mints in India, that is at times when

their establishments were not fully employed. On the face

of it, it would seem that the mints in England would be

less in a position to execute this coinage at the 1 per

centum seigniorage in view of the fact that labour being

more expensive than in India the cost of production would

be greater. On the other hand the British Government which

owns the Royal Mint is more interested in British trade

and prestige in China than is the Government of India.

3.

There remains the re-establishment

of