CO129-381 - Governor Sir Lugard - 1911 [11-12] — Page 36

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Minute by lir Burnes, Colonial Secretary, dated 28th, October.1911

I entirely agree. I should like to mention

a further difficulty in the way of suddenly demonetising

the whole currency. The wealthier and more educated

classes will have earlier information of the Govermont's

intention than will the coolies, or at least they will

more early appreciate it: the result will be that when

the prohibition of the circulation of the demonetised

coin becomes effective it will be found that the greater

part of it is in the hands of the poorest classes upon

whom the major part of the cost of re-establishing the

currency will thus be placed. The unfairness and unwisdom

of bringing about such a state of things is obvious.

2.

I would add that no prohibition of the

circulation of demonetised coins will be Sffective without

a very large number of police-court prosecutions and

heavy fines. The Chinese are so accustomed to carrying

on business with two or three currencies of varying

value that they will not hesitate to accept the demone-

tised coin freely at a discount unless they are

forcibly prevented from, doing so.

(intd(x) W.B.

28.10.11