CO129-376 - Governor Sir Lugard - 1911 [3-4] — Page 427

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Two things seem clear brehabilitates

Frist, that

this coinage will entail an expenditure out of all proportion to the benefit that will accrue from it, owing to the vast

H.K. Coins

amount of

A criculating

Second, that just when

there

in China

there is

a possibility of a reform of the Chinese currency in the air

not the

W

ents

to take this up.

is emphatically

K. 37.

Sir J. Anderson should see

$.3-7.!!

theus

One of the most formidable difficulties in the way

For d. Lugards scheme is the fact that he says he disensord it with the Manager of the Hong Kong & Shanghai Bank - an motitation which hunt be the largest holder of these excis .

Looking at this question frame the pound appines public morality, it is very deffecielty to distinguish "Silvern the obegation to reditve a moot aste "dalwers

and a subsidiary coins to doubt andsidiary come is only legal lender up to a limitat amount as belwrth individuals, but when it is lendured to the Gook which issued it, Here is a moral responsibility to accept this

(21,442). Wr.32,698-3. 6000. 2/10. A.&E.W. (26,462). ,, 9058-28. 6000. 6/10

love of to any

amount at its face value.

The fact that the depreciation of there comid Sinclar cuirty is due to the large wave of Chund does not affear in any way to diminuich the obligation of Hong Kong to riderm them,

like an very and it; failure to do so, is kantamplay.

act of

t

414

the total amount plased in circulation by the Govt. of HangKong was foly six millions and it has already redeemed over five milling. as the wove the spread over trosity three rears prior to 1906, a good deal of the counters years

no doubt disappeared, and much git would wever be returned, so that tim the amount news acce mng to be dealt with tod

pensacing sies put the be 105 million dollars, and the amount mi (at 20 millious valved in its redemption would be five.

million dollars at mort. ifit were redemis at it's face value of the Stong Kong rahmate is right it washed be gender tires millions.

d. Lugarda

ensers

the

Dr. F. Rugurds proposal is a compromise. The prevent holders of these cours have received thean at their depreciated value, and therefore have _ he muflies. no right to more than theat many vake, and he proposes to take over as as he can get at that value finansing

loan. At the same time be operation by proposes to discourage the cirvelation ins Hang Kang of Chuisse sectiiding tome - a ship which would have the effect of Orcury the Stang Kong coin curcalating in China to Hong. Kang where it wants fetch a better price then in China. When this influx had proceded for some time. Hang King anis would trud to