7 per centum to 8 per centum discount.
369
According to a statement published by the
Commissioner of Finance the notes in circulation amount to $19,050,000 while notes held in reserve by the Government alount to 86,390,000. It is very doubtful whether these figures are correct. Sir Kai Ho Kai, who ought to know, tells me that the Canton Government has issued altogether $30,000,000 in these notes up to date. What number of these is held in reserve is uncertain. The fact is that the monthly deficit, which on the showing of the Commissioner of Finance amounted to $1,000,000 a month up to the end of July and which according to a published statement of his was $494,950 in August, is covered by an issue of notes of cor- -responding amount. There is no other means of finding money to carry on the administration.
5.
I propose to address you in a separate des- -patch on the subject of the desirability of taking power by legislation to control better the putting of unauthorised notes into circulation in this Colony.
6.
The attached extract from a local newspaper describes some of the methods adopted in Canton to force the population to accept these notes at their face value.
7.
I have sent a copy of this despatch to His
Majesty's Minister at Peking and to His Majesty's Consul-General at
Canton.
I have the honour to be,
Sir,
Your most obedient,
humble servant,
Amay
Governor,&c..
nclosure
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