CO129-399 - Governor Sir May - 1913 [1-2] — Page 77

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necessary to place notes in circulation to the

extent suggested in the letter from this Office

of the 13th of Jan. 1912.

There are other points in the memorandum

of the acting Col. Sec. on which the Gov.'s

scheme of a note issue is based which are open

to criticism, but Mr. H. does not think that

the question of a Govt. note issue need be fur-

ther pursued at present. It will be observed that

that in the letter from the Committee of the

Chamber of Commerce of the 8th of Jan. last

the

pinion

Inion is expressed that the prohibition

of Chinese coins would of itself result in the

Colony's subsidiary coins rising to par or

nearly so. Mr. H. is inclined to share this

view. Unless the Chinese Authorities take vigour

ous action against Colonial coins circulating

in China, there does not seems great likeli-

hood of large quantities returning from China.

since the coins are preferred as being better

and more valuable than Chinese imitations. And

the probability of action by the Chinese Govt.

is made less by the present dearth of coin

in the neighbouring Province owing to the

reckless issue of unsecured and inconvertible

paper there.

In any case as, if prohibition of Chinese

coin is te be

berbeter to