CO129-331 - Public Offices - 1905 — Page 324

ENCLOSURES.

Enclosure No. 1.

Banks of Hong Kong and Shanghai and India, Australia, and China,

Sir,

to India Office.

London, 15th June 1903.

We beg to acknowledge receipt of your letter, No. F. 2758, of 28th May, intimating, in connection with the coinage of British dolars, that the Secretary of State had resolved to determine the contract of 14th December 1891, in six months from 10th instant.

We much regret to learn that after the expiry of the said notice the Indian Government proposes to increase the seigniorage to 2 per cent., alleging as a reason therefor that the present charge of 1 per cent. had proved to be inadequate.

In this connection we would respectfully submit that after the cessation of the coinage of rupees for the public, the Indian mints would, we think, have been comparatively idle but for their employment in making British dollars, and that at any rate if the seigniorage of 1 per cent, did not cover cost of the upkeep of the mini, it doubtless lessened the loss thereon. We also claim that the British dollar has proved a greater benefit to trade than was anticipated at its inception, and it would appear to be a great pity if its usefulness were in any way marred by increased cost of coinage, which increase would mean an extra burden on trade.

Further we rely upon these dollars to supply the requirements of China and Hong Kong.

We would therefore very strongly urge upon the Government the advisability of continuing the contract with the two banks upon the old terms.

With regard to the second point in your letter under reply, viz., that the coinage of rupecs, and probably the Straits Settlements dollar, shall, whenever necessary, take precedence over the mintage of the British dollar at the Indian mints, it will probably be within the know- ledge of the Secretary of State that strong representations were made. last year by the Bengal Chamber of Commerce to the Governor-General in Council as to the extreme undesirability of the proposal to close the Calcutta mint. Among the arguments then used was the advisability for trade reasons of having the Calcutta mint to fall back upon when- ever the Bombay mint was fully employed, so that, at all times, the British dollar could be coined with reasonable dispatch. We would now reiterate this argument as more potential than ever in view of the information given regarding the probable great delay in the coinage of British dollars if the trade has to rely solely on the Bombay mint.

Trusting the Secretary of State will see fit to reconsider his decision,

We are, Sir,

The Under Secretary of State

for India.

For the Hong Kong and Shanghai

Banking Corporation,

EWEN CAMERON, Manager. For the Chartered Bank of India,

Australia, and China,

CALEB LEWIS, Manager.

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