CO129-329 - Governor Nathan - 1905 [7-12] — Page 626

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Mint at the present time.

10.

But I am equally averse to the

British dollar disappearing from China. It is true that

this dollar does not circulate at Shanghai or on the Yang

Tse Kiang and that it has not hitherto competed successful-

-ly with the "chopped" or clipped Mexican dollar which is

the principal medium of circulation in Canton and the

Southern Ports of China; it has, however, since 1900 been

readily received in the North and its use would doubtless

extend in time if a low rate of seigniorage could be main-

-tained. It is true that at the present time when, owing

to various causes, the balance of trade is against China,

her importations of dollars of any kind are too small and

uncertain to admit of the banks guaranteeing to take a

fixed amount per annum. On the other hand the stock of

currency wearing out quickly from age and clipping and

being further reduced by being melted up for the manufac-

-ture of small coins at the numerous provincial mints,

fresh importations are inevitable in the future. It is

true also that the Mexican Government dollar has hitherto

formed a ready reception in China and that it has been

proposed to coin a Mexican trade dollar for the special

purposes

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