CO129-331 - Public Offices - 1905 — Page 300

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It is to be understood that they are not used

for financing the trade proper of the Port which is

done by means of Taels but they have been largely

used for payment of railway freights and passengers'

fares, so that in this way the range of their cur-

rency must be extensive.

Since the reform of currency in Mexico the Tael

price of Mexicans has declined considerably.

The foreign Banks for the past six months or so

issue nothing but Mexicans, naturally holding their

stock of British dollars for the premium. I think it

would be advantageous if the Indian Mint could reduce

their seigniorage charges.

(Signed)

D. H. Mackintosh.

At

certain times of the year they were driven to a high

premium in Shanghai by the exigencies of trade.

This appears to be no longer the case.

With the heavy minting charges of 2% for British

dollars the Mexican has become the cheaper coin and

at this port have driven the British dollars prac-

tically out of circulation.

British dollars are at present at a premium of

24% compared with Mexicans. The astonishing fact

remains that Chinese frequently are content to buy

British dollars at that premium. I have actually

sold a lot of 20,000 British dollars at that premium

last week.

The

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