CO129-334 - Governor Nathan - 1906 [5-7] — Page 581

575

prevent the present issues being used in the

majority of private transactions, and even greater

confusion and paralyzation of trade than exist

at the present time would ensue.

12.

I regret that I can suggest no useful action

that can be taken by the Hongkong Government in this matter

beyond laying down the principle that they will not again

engage in the trade of supplying China with taken coins at

their face value, and beyond doing their utmost to persuade

the Cantonese authorities to restrict their production of

such coins.

You

13.

I also regret that I did not consider, as I

should have done, the whole question of the supply of sub-

sidiary coins to China before transmitting for Mr.Lyttel-

ton's approval in my despatch No.85 of the 24th.March,

13321

1905, a programme of proposed importations of subsidiary or

coin for that year. If I had fully thought over the matter,

in the same way as a short time previously I had had occa-

sion to consider a proposal that the Governments of the

West African Colonies should add to their revenues by tak-

ing the profits on and the responsibilities for a West

African token coinage. I should probably have seen the bear-

ing on the question of Hongkong subsidiary coinage of the

conclusion I then came to, viz:- that profits on a token

atTMTM

currency are illusory if one is prepared to redeem it any

time