2
shipped back to England 3,398,000 dollars' worth of Hong Kong subsidiary coins to be melted and sold as bullion, at considerable loss.
Since that date all subsidiary coins received by Government as payment of revenue, amounting to some 360,000 dollars' worth per annum, have been withdrawn from circulation and retained in the Treasury. The sale of these coins as bullion will, it is estimated, involve a loss to the revenue of about 40,000 dollars per annum.
It is clear, therefore, that the Hong Kong Government have already taken steps for some time past with a view to rehabilitating its own currency which circulates in the two Kwang Provinces, and is at a similar discount there. The effect of these measures is already apparent by the fall in discount on Hong Kong subsidiary coins from nearly 10 per cent. to nearly 4 per cent.
In March last the Viceroy's predecessor prohibited the manufacture of subsidiary coins by the Canton Mint for a period of three months, and I am given to understand that since that date subsidiary coins have not been coined by the Treasury at Canton, and that the effect of this action is also apparent by the fall in the discount of Cantonese subsidiary coins in almost the same proportion as in the case of the Hong Kong coins.
The stocks of subsidiary coins issued by the two Governments are, however, so great that the steps that have been taken must be continued for some years before the coins again reach par, and thereafter it is necessary that future manufacture and issue should be strictly regulated in order that the coinage may be maintained at par.
The Hong Kong Government is prepared to give a pledge that they will not again manufacture or issue subsidiary coins till parity is reached, and that thereafter they will regulate its manufacture and issue so that parity may be maintained. But it is obvious that as long as Cantonese subsidiary coins are allowed to circulate in the Colony, the effect of such restriction by the Hong Kong Government will be neutralized unless the Provincial authorities impose similar restrictions.
I trust therefore that your Highness will urge upon the Viceroy the importance of co-operation with the Government of Hong Kong towards the object in view (one which I feel confident your Highness will consider of equal advantage to China), by undertaking that the manufacture and issue of subsidiary coins by the Provincial authorities shall be discontinued until the Canton coinage reaches par; that thereafter the manufacture and issue will be limited to actual requirements of the currency and to such quantities as will prevent the coins from falling again to a discount, and that at the same time the influx of the subsidiary coins of other provinces of China into the two Kwang will be prevented.
The Government of Hong Kong has no ulterior object in view, and does not seek any special advantage in the matter.
His Majesty's Consul-General in Canton is bringing the question again to the notice of the Viceroy, who recently, in conversation with the Governor of Hong Kong, admitted that the interests of Hong Kong and Canton in the question were identical, and that what was good for one must be good for the other.
These proposals are put forward in the interests of the common trade existing in South China and that of the hundreds of thousands of persons—European and Chinese—who are engaged in it.
I therefore earnestly hope that your Highness will urge upon the Viceroy at Canton the importance of co-operation with the Government of Hong Kong in effecting the rehabilitation of the subsidiary coinage.
I avail, &c.
(Signed)
J. N. JORDAN.
3
It was noticed last month that the discount on subsidiary coinage continued to increase, and on inquiry it transpired that about 10,000 taels' worth of 20-cent pieces, representing an output of 80,000, were being struck daily at the Canton Government Mint. The effect of this large output of subsidiary coinage, in view of the increasing discount, was inflicting serious loss on the Hong Kong Government, for the reasons stated in my note of the 17th February, and, at the request of the Governor, I made verbal representations to Viceroy Chang on the matter during my stay in Canton.
The Viceroy urges as excuses for the continued coinage of subsidiary currency that (1) he feared that if this coinage ceased entirely, a considerable number of the expert staff must be discharged, and these men might take to uttering illicit coin; and (2) that out of some 6,000,000 taels which the province has to remit to Peking the profits from the Mint form a part, and that he would be at a loss to replace this portion if those profits were reduced. His Excellency, however, told me that he proposed, as far as possible, to restrict coinage at the Canton Government Mint to dollar pieces, and acknowledged with sincerity his obligations to the Government of Hong Kong for many friendly good offices.
The Viceroy is much impressed with, and deeply grateful for, the attitude maintained by the Hong Kong Government in the matter of the import of arms, the harbouring of revolutionaries, &c., and your Highness is also aware of that Government's action in regard to the prohibition of the export of prepared opium into China. I understood from the Viceroy that he was quite ready to show his appreciation of these good offices and to meet the wishes of the Hong Kong Government in this matter, provided that the Board of Finance would forego the profits derived from the minting of subsidiary coinage.
I have the honour to request that your Highness will be so good as to give this proposal of the Viceroy's your most favourable consideration. The injury done to trade both at Canton and Hong Kong by the continued output of silver cent pieces at a constantly increasing discount is very great, and I feel sure that if the Chinese Government would categorically forbid the minting of any more silver subsidiary coin at Canton until they reach par value, and would consent to forego the mint profit except on dollars, it would beyond doubt be regarded by His Majesty's Government as a very friendly and courteous act, and as a real endeavour to give practical effect to their obligations under the Treaty of 1902.
I avail, &c. (Signed)
Inclosure 3 in No. 1.
Prince Ch'ing to Sir J. Jordan.
J. N. JORDAN.
(Translation.) Sir,
Peking, May 8, 1908. I HAVE the honour to acknowledge the receipt of your Excellency's note of the 30th April on the subject of subsidiary coinage at Canton, in which you state that if the Chinese Government would categorically forbid the minting of any more silver subsidiary coins at Canton until they reached par value, and would consent to forego the mint profit except on dollars, it would be regarded as a friendly act and a real endeavour to fulfil the Commercial Treaty stipulations of 1902.
I have the honour to inform your Excellency that the Board has transmitted a copy of your note to the Board of Finance and the Viceroy at Canton with the request that satisfactory measures may be taken.
I avail, &c.
Your Highness,
Inclosure 2 in No. 1.
Sir J. Jordan to Prince Ch'ing.
Peking, April 30, 1908.
I HAVE the honour to acknowledge the receipt of your Highness' note of the 25th April,* stating the action which is being taken by the Viceroy of Canton in regard to restricting the issue of subsidiary silver coinage.
Since writing my note of the 17th February I have received two communications from the Governor of Hong Kong, and have also had the advantage of personal conversations with his Excellency on the subject during my recent visit to the south of China,
* Not inclosed.
Page 119
2
shipped back to England 3,398,000 dollars' worth of Hong Kong subsidiary coins to be melted and sold as bullion, at considerable loss.
Since that date all subsidiary coins received by Government as payment of revenue, amounting to some 360,000 dollars' worth per annum, have been withdrawn from circu- lation and retained in the Treasury. The sale of these coins as bullion will, it is estimated, involve a loss to the revenue of about 40,000 dollars per annum.
It is clear, therefore, that the Hong Kong Government have already taken steps for some time past with a view to rehabilitating its own currency which circulates in the two Kwang Provinces, and is at a similar discount there. The effect of these measures is already apparent by the fall in discount on Hong Kong subsidiary coins from nearly 10
per cent. to nearly 4 per cent.
In March last the Viceroy's predecessor prohibited the manufacture of subsidiary coins by the Canton Mint for a period of three months, and I am given to understand that since that date subsidiary coins have not been coined by the Treasury at Canton, and that the effect of this action is also apparent by the fall in the discount of Cantonese subsidiary coins in almost the same proportion as in the case of the Hong Kong coins.
The stocks of subsidiary coins issued by the two Governments are, however, so great that the steps that have been taken must be continued for some years before the coins again reach par, and thereafter it is necessary that future manufacture and issue should be strictly regulated in order that the coinage may be maintained at par.
The Hong Kong Government is prepared to give a pledge that they will not again manufacture or issue subsidiary coins till parity is reached, and that thereafter they will regulate its manufacture and issue so that parity may be maintained. But it is obvious that as long as Cantonese subsidiary coins are allowed to circulate in the Colony, the effect of such restriction by the Hong Kong Government will be neutralized unless the Provincial authorities impose similar restrictions.
I trust therefore that your Highness will urge upon the Viceroy the importance of co-operation with the Government of Hong Kong towards the object in view (one which I feel confident your Highness will consider of equal advantage to China), by undertaking that the manufacture and issue of subsidiary coins by the Provincial authorities shall be discontinued until the Canton coinage reaches par; that thereafter the manufacture and issue will be limited to actual requirements of the currency and to such quantities as will prevent the coins from falling again to a discount, and that at the same time the influx of the subsidiary coins of other provinces of China into the two Kwang will be prevented.
The Government of Hong Kong has no ulterior object in view, and does not seek any special advantage in the matter.
His Majesty's Consul-General in Canton is bringing the question again to the notice of the Viceroy, who recently, in conversation with the Governor of Hong Kong, admitted that the interests of Hong Kong and Canton in the question were identical, and that what was good for one must be good for the other.
These proposals are put forward in the interests of the common trade existing in South China and that of the hundreds of thousands of persons-European and Chinese- who are engaged in it.
I therefore earnestly hope that your Highness will urge upon the Viceroy at Canton the importance of co-operation with the Government of Hong Kong in effecting the rehabilitation of the subsidiary coinage.
I avail, &c.
(Signed)
J. N. JORDAN.
3
It was noticed last month that the discount on subsidiary coinage continued to increase, and on inquiry it transpired that about 10,000 taels' worth of 20-cent pieces, representing an output of 80,000, were being struck daily at the Canton Government Mint. The effect of this large output of subsidiary coinage, in view of the increasing discount, was inflicting serious loss on the Hong Kong Government, for the reasons stated in my note of the 17th February, and, at the request of the Governor, I made verbal representations to Viceroy Chang on the matter during my stay in Canton.
The Viceroy urges as excuses for the continued coinage of subsidiary currency that (1) he feared that if this coinage censed entirely, a considerable number of the expert staff must be discharged, and these men might take to uttering illicit coin; and (2) that out of some 6,000,000 taels which the province has to remit to Peking the profits from the Mint form a part, and that he would be at a loss to replace this portion if those profits were reduced. His Excellency, however, told me that he proposed, as far as possible, to restrict coinage at the Canton Government Mint to dollar pieces, and acknowledged with sincerity his obligations to the Government of Hong Kong for many friendly good offices.
The Viceroy is much impressed with, and deeply grateful for, the attitude main- tained by the Hong Kong Government in the matter of the import of arms, the harbouring of revolutionaries, &c., and your Highness is also aware of that Govern ment's action in regard to the prohibition of the export of prepared opium into China. I understood from the Viceroy that he was quite ready to show his appreciation of these good offices and to meet the wishes of the Hong Kong Government in this matter, provided that the Board of Finance would forego the profits derived from the minting of subsidiary coinage.
I have the honour to request that your Highness will be so good as to give this proposal of the Viceroy's your most favourable consideration. The injury done to trade both at Canton and Hong Kong by the continued output of silver cent pieces at a constantly increasing discount is very great, and I feel sure that if the Chinese Government would categorically forbid the minting of any more silver subsidiary coin at Canton until they reach par value, and would consent to forego the mint profit except on dollars, it would beyond doubt be regarded by His Majesty's Government as a very friendly and courteous act, and as a real endeavour to give practical effect to their obligations under the Treaty of 1902.
I avail, &c. (Signed)
Inclosure 3 in No. 1.
Prince Ch'ing to Sir J. Jordan.
J. N. JORDAN.
(Translation.) Sir,
Peking, May 8, 1908. I HAVE the honour to acknowledge the receipt of your Excellency's note of the 30th April on the subject of subsidiary coinage at Canton, in which you state that if the Chinese Government would categorically forbid the minting of any more silver subsidiary coins at Canton until they reached par value, and would consent to forego the mint profit except on dollars, it would be regarded as a friendly act and a real endeavour to fulfil the Commercial Treaty stipulations of 1902.
I have the honour to inform your Excellency that the Board has transmitted a copy of your note to the Board of Finance and the Viceroy at Canton with the request that satisfactory measures may be taken.
I avail, &c.
Your Highness,
Inclosure 2 in No. 1.
Sir J. Jordan to Prince Ch'ing.
Peking, April 30, 1908.
I HAVE the honour to acknowledge the receipt of your Highness' note of the 25th April,* stating the action which is being taken by the Viceroy of Canton in regard to restricting the issue of subsidiary silver coinage.
Since writing my note of the 17th February I have received two communications from the Governor of Hong Kong, and have also had the advantage of personal conversations with his Excellency on the subject during my recent visit to the south of China,
* Not inclosed.
119
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