CO129-365 - Governor Sir Lugard - 1910 [1-3] — Page 149

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Sir,

I have the honour to acknowledge with thanks the receipt of Your Excellency's despatch of the 26th October on the subject of the issue of subsidiary coinage from the Canton Mint. The reply received from the Viceroy of Canton by the Walrupu cannot be regarded as satisfactory, and I have since heard that he disclaims any idea of reducing the output of subsidiary coins which he maintains are required for currency purposeć In these circumstances, looking to the fact that these coins circulate at a heavy discount in Hong- kong, and in view of the obligation incurred by China under Article 2 of the 'Mackay Treaty I would ask Your Excellency to continue to bring what pressure you end upon the Waumupu to

induce the Viceroy to refrain from issuing further supplies

can

of subsidiary coin until the existing coins have reached par.

2. I have since seen the Imperial Decree issued on the 5th of last October establishing a tael currency with subsidiary coins in decimal parts of a tael, and I have the honour to enquire whether it is the intention of the Chinese Government to withdraw the existing subsidiary coins represent- ing decimal parts of a dollar and to issue the new subsidiary coins (decimal parts of a tael), and whether the output of the Provincial Mints will be under Central Control. I presume that pending the return of His Excellency Tong Shao Yi no very

pronounced