Enclosure 4.
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189
A similar notice was issued as long ago as April last without any effect, as far as I can learn.
5.
The immediate result of these measures was to reduce the discount on notes from more than 20% to a nominal par. Seven persons have recently been fined $30 each for refusing to accept notes. Nevertheless I am informed that the regulations are being everywhere evaded. Meanwhile a serious blow has been dealt to business. Honey changers and banks keep their doors open but decline to do serious business: the pawnshops will not take pledges of over 1 in silver, the limit of silver coin allowed: the rice shops, which were previously selling at 14 catties for gl (silver) and 12 catties for $1 (note) make the price now 12 catties for 1 silver or note. Incidentally the silk industry in the Province is likely to suffer. Silk merchants employ many hands in the country at small daily wages of from 20 to 30 cents. These sums cannot be paid in notes. But under the regulations silver may not be exported from Canton in greater quantities than 850 at a time.
6.
In accordance with their practice the Chinese Authorities have been endeavouring to seek financial relief from the well lined pockets of the rich Chinese Community of this
Colony. A proposal to raise a loan here of $5,000,000 has been
mooted. It has not fructified yet and I shall do all I can to
prevent it. The latest proposal, as I am informed, is to issue
Lottery Bonds in small shares of $10 with periodical drawings
with many prizes and some of large sums of 20,000 or $30,000.
A further attempt is at the same time being made to obtain
patriotic subscriptions and there has been distributed in Hong‐
-kong a leaflet (copy translation enclosed) which is designed to appeal to Chinese living abroad. It is not without interest.
I have sent a copy of this Despatch to His
Britannic
7.
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