r
106
No. 22.
No, 26.
26
4. As regards the question of the acceptance of worn coins, dealt with in your despatch No. 19 of the 14th of January, 1910, you will notice that it is not alluded to in the Treasury letter of the 21st of December. I am asking their Lordships for an expression of their
views on the matter.
No. 27.
No. 29.
No. 28.
I have, &c.,
Governor
Colonel Sir F. D. Lugard, k.C.M.G., C.B., D.S.O.
jc.,
ge.
No. 29.
L. HARCOURT.
Copy of despatch from Secretary of State for Colonies to Governor of Hongkong.
HONGKONG. No. 64.
DOWNING STREET,
28th February, 1911.
SIR,-1 have the honour to acknowledge the receipt of your despatch No. 8* of the 6th January, and to inform you that I approve the expenditure of the suns specified in Financial Minutes Nos, 93 to 114 of 1910.
Governor
I have, &c.,
Sir F. D. LUGARD, K.C.M.G., C.B., D.§.O.,
$0.5
Ca
je.
No. 30.
L. HARCOURT,
Copy of despatch from Secretary of State for Colonies to Governor of Hongkong. HONGKONG. Confidential.
DOWNING STREET,
1st March, 1911.
SIR,I have the honour to acknowledge the receipt of your despatch No. 21 of the 11th of January, explaining the circumstances in which a supplementary vote of $114,000 was taken in the Legislative Council of Hongkong on account of the redemption of the subsidiary coinage of the Colony.
2. I have approved the expenditure in question in my despatch No. 64 of the 28th of February.
3. I would invite reference to my confidential despatch of the 18th of January as regards the policy to be followed in future in connection with the subsidiary coinage of Hongkong.
I have, &c.,
Governor
Sir F. D. LUGARD, K.C.M.G., C.R., D.S.O»g
&c.,
&c.,
$e.
* Not printed.
L. HARCOURT,
27
-------
No. 31.
Memorandum by Mr. R. II. Crofton, Chief Clerk, Colonial Secretary's Office.
The Subsidiary Coinage Question.
6th March, 1911.
1. Principles.-"In nearly all countries the currency system, even where consisting essentially of a single metallic standard and convertible notes, contains two other classes of coins-subsidiary silver coins and minor coins of copper or some other metal. These coins almost invariably contain metal of less value as bullion than the nominal value of the coins. * 誰 *These subsidiary and minor coins are now issued in civilised countries from pur- chases of bullion on its own account by the Government, which is thus enabled to keep the quantity within such limits as it thinks proper. Such limitation of the quantity to the amount actually needed in retail transactions keeps the coins at their face value indepen- dently of the value of the bullion which they contain. * They are a form of credit currency which would be dangerous if abused (The Principles of Money and Banking by C. A. Conant-pp. 286-7)." Subsidiary coinage is then a recognised undertaking of Governments, the object of which is to afford a medium of exchange for domestic retail transactions and an essential condition of whose existence is limitation of supply.
*
2. The Hongkong (Coinage) Order, 1895.--The first point to be noted is that while this Order provided for contracts, etc., to be made according to the standard coin of the Colony :-
"Every contract, sale, payment, hill, note, instrument, and security for money, and every transaction, dealing, matter, and thing whatever relating to money, or involving the payment of or the liability to pay any money, shall, in the absence of express agreement to the contrary, be held to be made, executed, entered into, done, and had in the Colony, according to the standard coin of the Colony."
as in the Coinage Act, 1870 :-
made in
"Every contract, sale, payment, bill, note, instrument, and security for money, Contracts, and every transaction, dealing, matter, and thing whatever relating to e.. to be money, or involving the payment of or the liability to pay any money, currency. which is made, executed, or entered iuto, done or had, shall be made, executed, entered into, done and bad according to the coins which are current and legal tender in pursuance of this Act, and not otherwise, unless the same be made, executed, entered into, done or had according to the currency of some British Possession or some foreign state."
it included no provision for the prohibition of other coins and tokens as in the Act of 1870 :-
Prohibition
ening and
"No piece of gold, silver, copper or bronze, or of any metal or mixed metal, of
any value whatever, shall be made or issued, except by the Mint, us a coin of other or a token for money, or us purporting that the holder thereof is entitled tokena, to demand any valne denoted thereon. Every person who acts in con- travention of this section shall be liable on summary conviction to a penalty not exceeding twenty pounds."
3. The Trade in Subsidiary Coinage.-The second point which deserves consideration is that the Hongkong Government allowed itself to be drawn into and continued for a considerable period to engage in a trade in subsidiary coinage with the Liang Kuang Pro- vinces which was unfair to those Provinces because the Hongkong Government were giving in metallic value considerably less than they were getting in face value. The trade passed through the various stages which precede and succeed a boom. Its enormity may be gathered from a comparison of the figures for say the year 1900 (see appendix), when the "boom" reached its height, with the figures given in the Majority Report of the Subsidiary Coin Committee :-
"It may however be taken that $5 per head is sufficient in a community whose standard coin is $1 and where the legal limit of tender is $2.
No comments yet.
Private notes are available after approval.