CO129-385 - Public Offices - 1911 — Page 31

- gafonotna

Trafod of CHIRO

After the unification of the Currency has beon 30

accomplished, the next step will be to restrict or contract

the amount in circulation until the value in exchange of

the Standard Dollar is forced up to the point at which it

is desired to fix tue Gold Standard unit.

Coinage will of course remain a Government monopoly

and free coinage in the sense in which it at present exists

in China will cease. Bar Silver will no doubt continue to

be imported as in India, but it will no longer legally be

available as in the past for conversion into sycee, since

that has been demonetized, or for coinage, since that is a

Government monopoly. It is probable that China will con-

tinue to absorb silver, as India does, but in future it

will be as a commodity only

-

always assuming that the

Chinese Currency Scheme is made effective.

The point is that sycee having been demonetized, no

one can be forced to accept it as currency but it is doubt-

ful, I think, if the Chinese Covernment will be ablo, at

least at first, to prevent merchants accepting it by

arrangement if they wish. The Government might then, with

the consent of the Powers, take steps to restrict the

importation