CO129-331 - Public Offices - 1905 — Page 304

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although Bombay appears to present certain points

of convenience as a port of divergence for bar sil-

ver on its way to China, it would probably be found

more practical to erect an independent mint at Hong-

kong.

That the extended circulation of a well coined

British dollar in China would contribute to British

prestige there can be very little doubt. The thor-

ough workmanship and solid qualities of the British

coin would symbolise to the Chinese the principles

on which we have built up our national reputation

in their country; its extensive circulation would

impress them with a sense of the dimensions of

British trade; and it would fix a standard of ex-

cellence from which Chine, in the currency reforms

to come, would find it difficult to retrograde.

No doubt most of these objecte are not such as

to commend themselves to the sympathy of other Powere

and it le possible that their banks, the Russian

and French bank for example, might have it in their

power at the outset to place difficulties in the

way of the free circulation of the British dollar.

The final decision, however, must rest with the nat-

ural laws of supply and demand, and with the verdict

of the native market. If the British dollar can be

produced in sufficient quantity to meet the demands

of currency, and at a cost to compete favourably

and if the

with the proposed new Mexican coin, foreign banks

will give the preference to the former;

native finds the Mexican dollar replaced by a reli-

able coin, whose superior workmanship precludes the

danger of counterfeit and renders it safe to dispense

with all tests, he will not be slow to appreciate

the convenience and security forced upon him by the

new state of things.

(Signed)

gkong and Shanghai Bank,

Peking, 17th June, 1905.

Received 19th June, 1905.

E. G. Hillier.

power