CO129-382 - Public Offices - 1911 — Page 258

[This Document is the Property of His Britannic Majesty's Government.]

AFFAIRS OF CHINA.

CONFIDENTIAL.

[December 13.]

SECTION 1.

[45045]

No. 1.

-3447

Colonial Office to Foreign Office.—(Received December 13.)

Downing Street, December 12, 1910.

Sir,

I AM directed by the Secretary of State for the Colonies to transmit to you, with reference to letter to the Colonial Office of the 8th October, copies of despatch (with enclosures) from the Officer administering the Government of Hong Kong on the subject of the new Chinese subsidiary coinage. A similar communication has been addressed to the Treasury.

I am,

&c.

FRANCIS J. S. HOPWOOD.

Enclosure 1 in No. 1.

My Lord,

Acting Governor Sir F. May to the Earl of Crewe.

Government House, Hong Kong, October 24, 1910. WITH reference to my despatch of the 29th July, I have the honour to transmit copy of a despatch which I have addressed to His Britannic Majesty's chargé d'affaires at Peking concerning the reopening of the Canton mint for the "coinage of 20-cent pieces.

2. In the same despatel I have referred to the present financial crisis in China, which has been largely induced by the non-observance by Chinese private banks (and probably by Chinese Government banks also) of the regulations issued in 1909, copy of which is enclosed for convenience of reference, concerning the issue of bank notes by Government and private banks.

Sir,

I have, &c.

F. H. MAY,

Officer administering the Government,

Enclosure 2 in No. 1.

Acting Governor Sir F. May to Mr. Max Müller.

Government House, Hong Kong, October 24, 1910. WITH reference to your Excellency's despatch of the 3rd June to Sir E. Grey, in which you stated that "the minting of all coins now in circulation was to cease from the publication of the regulations" for the reform of the currency recently issued by the Board of Finance, I have the honour to bring to your Excellency's notice that it is reported to me by His Britannic Majesty's consul-general at Canton, in reply to my enquiries on the subject, that the Canton mint has temporarily resumed the coinage of 20-cent pieces on the 18th instant. It is stated in the public press that this step is in relief of the money market, in which there is much stringency owing to the financial crisis in Canton.

From the enclosed translation of what purports to be a notification by the provincial treasurer, it would appear that the true reason probably is that the reserves of the Ta Ch'ing (Goverment Bank) are not deemed sufficient to meet a possible run upon it.

But whatever the true reason is, I would ask you to be good enough to move the Chinese Government to suspend the permission at the earliest possible moment in the interest of the already depreciated silver coinage of the province, which will be further depreciated by any fresh issues of coin.

2. The financial crisis at present existing is, as your Excellency is no doubt aware, largely due to the issue of bank notes by private Chinese banks without proper

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