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favour with the Chinese, and circulated freely with them, and has recently commanded a premium of two to three per cent over the Mexican Dollar. As these two coins, the British Dollar and the Mexican Dollar, have of late years contributed largely in meeting the currency requirements for trade purposes, of China generally, the great advantage of this extended circulation of a British Dollar, from a political point of view is obvious.
In May 1903 the Government of India represented that the seigniorage charge of 1% for the coinage of the British Dollar had proved inadequate and that 2% would be a fair and reasonable rate to charge in future. The increased cost, which would have been involved by this additional 1%, proved prohibitive as compared with the cheaper terms on which Mexican Dollars could be obtained for China, and as the Straits Settlements had by that time decided to adopt a gold standard, and coin a silver dollar for themselves, the agreement was allowed to lapse and expired on 10th December 1903.
With the cessation of coinage of British Dollars the demand for supplies of coins from Mexico naturally increased but that country has recently legislated in favour of a Gold Standard, and therefore that source of supply is no longer available. It has been proposed however that they should make a special arrangement to supply China with dollars coined from Silver produced in Mexico.
From a political point of view this circulation of a Mexican dollar in preference to a British Dollar would be a retrograde step, and one to be deplored, but failing a satisfactory arrangement with the Government of India to revert to the original charge of 1% Seigniorage for coining British Dollars the Exchange Banks would be unwillingly compelled to make arrangements with the Government of Mexico for the coinage of a special trade dollar for China.
With
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favour with the Chinese, and circulated freely with
them, and has recently commanded a premium of two
to three per cent over the Mexican Dollar. As these
two coins, the British Dollar and the Mexican Dollar,
have of late years contributed largely in meeting the
currency requirements for trade purposes, of China
generally, the great advantage of this extended cir-
culation of a British Dollar, from a political point
of view is obvious.
In May 1903 the Government of India represented
that the seigniorage charge of 1% for the coinage of
the British Dollar had proved inadequate and that 2%
would be a fair and reasonable rate to charge in
future. The increased cost, which would have been
involved by this additional 1%, proved prohibitive
as compared with the cheaper terms on which Mexican
Dollars could be obtained for China, and as the
Straits Settlements had by that time decided to adopt
a gold standard, and coin a silver dollar for them-
selves, the agreement was allowed to lapse and ex-
pired on 10th December 1903.
With the cessation of coinage of British Dollars
the demand for supplies of coins from Mexico naturally
increased but that country has recently legislated in
favour of a Gold Standard, and therefore that source
It has been pro-
of supply is no longer available.
posed however that they should make a special arrange-
ment to supply China with dollars coined from Silver
produced in Mexico.
From a political point of view this circulation
of a Mexican dollar in preference to a British Dollar
would be a retrograde step, and one to be deplored,
but failing a satisfactory arrangement with the Gov-
erment of India to revert to the original charge of
1% Seigniorage for coining British Dollars the Ex-
change Banks would be unwillingly compelled to make
arrangements with the Government of Mexico for the
coinage of a special trade dollar for China.
With
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