CO129-399 - Governor Sir May - 1913 [1-2] — Page 60

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rehabilitation of the Hongkong coin will prove a benefit to the

lower classes.

45 1946

5.

It was stated in Sir M. Nathan's Confidential

Despatch of the 26th, of July, 1906, that the prohibition of the

circulation of Chinese coins in the Colony was impracticable be-

-cause the enforcement of such a law would fill the Gaol of the

Colony and would deal a mortal blow at the large traffic and petty

trade between Hongkong and Canton.

I have carefully considered the first object-

-ion and I am of opinion that prohibition of importation (except

by Bankers and Money-changers) and of circulation, would act

automatically in causing the Chinese coins to disappear from

circulation even as the recent law of the same nature in respect of Foreign Copper coin has done. As regards interference with

traffic and petty trade I do not think such would result, for the

Chinese are so accustomed to traffic in exchange that with

adequate facilities for changing money no such interference is

anticipated. In this connection I would point out that the only

Chinese member (Mr. Wei Yuk) of the Committee appointed by Sir F.

Lugard to investigate the question of rehabilitating the Hongkong

coinage was in favour of prohibition, and that Sir Kai Ho Kai was

also in favour of such action see his opinions in answer to the

set questions at pages 118 to 137 of the printed correspondence relating to subsidiary coin of 1906-1908.

As regards trade itself it is not denied by

any that, as stated by some in answer to Question 7 of the questions referred to, trade is carried on by means of Bank drafts and orders and not through the medium of subsidiary coins.

6.

These views are apparently endorsed by the Chamber of Commerce from whose reply (copy enclosed) you will observe that in their unanimous opinion the time has now arrived when the use of subsidiary coinage other than that of the Colony should be prohibited and that the law should come into force on the 1st. day of January, 1914. With this opinion I and my Execut-

-ive Council concur and I therefore venture to transmit for your

Conclosure 3.

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