CO129-378 - Governor Sir Lugard - 1911 [6-7] — Page 177

CO129 Colonial Office Hong Kong Records 理藩院香港檔案 All

174

loss due to discount.

In the present year the burden of the

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interest and sinking fund for the Railway Loan and other

causes of financial strain of which you are aware, caused me

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10.

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to hesitate to incur an extra liability of some $72,000 for

which no provision had been made in the Estimates prepared

during my absence from the Colony for as I have pointed out

the vote of $75,000 was sufficient only for the estimated loss

by discount without demonetization. I had on January 20th.,

1910, addressed to you a long Despatch covering a proposal for

dealing with the whole question, which had the approval of all

the opposing schools of thought here. It was not until February

1911, that I received a reply dated 13th. January, 1911. The

enclosed letter from Mr. Cox to the Treasury stated that Lord

Crewe considered that "the system of withdrawal of Subsidiary

Coins paid in to the Treasury is a useless expense". The

Treasury endorsed this view observing that "any measures

calculated to retard the fall (of Subsidiary Coin to bullion

.would merely involve the Colony in fruitless

expenditure, upon the redemption of coins imported for that

value).

purpose.

..the Colony has no alternative to submitting to

the inconvenience of a depreciated Subsidiary Coinage". That

you

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