CO129-376 - Governor Sir Lugard - 1911 [3-4] — Page 426

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there must be, having regard to the total amount

coined. Is it not clear that if the Govt. of

H.. established a higher value for their sub-? sidiary coins in H. C., as compared with their

otherwise as they ware.

they

In course of time the subsidiary

coins of both countries would have risen again. To ex- }

clude Chinese coins from H.4. would have led China to

China

value in China, coins would come to H.1.

from

China, being replaced by Chinese subsidiary

coins of the same intrinsic value

wnion can

be turned out wholesale by the Canton Hint ?

As to the Govt. benefitting by the full rate

of

the discount, he means that they will buy

its face valus at a discount

A

M

up subsidiary coin and sell it for its silver

A

value at a loss without, as I think, doing

any good. As to withdrawing subsidiary coin paid into the Treas. and selling it as bullion

tha Gov. overlooks the fact that that process

only applied to the subsidiary coin which the

Govt. had to receive, under the lagal limit of

tender. Withdrawal would be quite sound, if it

Personally

still the wid Fed

J

Ewan of the La cuisin

produced any effect but in the ciros. it evidently Co.

does not.

exclude our subsidiary coins from China. It now appears

they

that they will probably do so in any case, and it will

either cone back to H.. or sell as bullion. We cannot

help, and the holders must lose. After all the loss

can only be about 9 or 10 per cent the difference

between coins 8*4:800 and 900 fine.

As to publication, 1.certainly would not allow the

publication of corresp. such a ticklish matter.

on

would reply that he should inform the Council that

Af

in her 2 of 10227]

in the opinion of H.M.G. the Cellony has ne-

ternatiTO

at present but to submit to the inconvenience of a

depreciated subsidiary currency, since any attempt to

cope with the difficulty would involve the Colony im

hazvy_arpenes without much prospect of any good-result.

And send copy of this and our reply to Treas.

We need not comment on the Cov.'s arguments in this

desp.

As to proceeding in co-operation with China,

our letter was written before we heard of the new

Currency scheme for China. Obviously the best solution would have been to get Canton to stop

giag subsidiary coins, and to leave matters

colating

a al

Lord Zucas

Dr. 15