COPY.
26000
RECE
Bra£ 28 JUL 13
51
Extract from lemorandum enclosed in letter No. 25 of 30th. June,
1913, from H. B. M. Consul-General, Canton, to H. B. M.
Chargé d'Affaires, Peking.
9. A large quantity of depreciated paper currency is in circulation. It consists of Kuangtung Government Notes (1) issued under the Imperial Regime and re-chopped by the Local Republican Government and (2) notes issued by the Canton Goverment since the Revolution and (3) forged notes, which are practically indistinguis
-hable from the last.
10.
The face value of the genuine provincial notes, old and new, in circulation is about £23,000,000. It is impossible to estimate, with anything approaching to accuracy, the value of the forged notes: general native opinion places it at from $10,000,000 to $20,000,000. The discount of these notes on subsidiary silver coin has for some time been about 15% and on Hongkong Bank-notes
22% or 23%-
1
Since the transfer lately of the ex-Tu Tu, Hu Han Min, there has been a slight tendency towards appreciation. The Tu Tu- -designate, Ch'en Chiung-ming has requested the Central Government to advance $20,000,000 in order to put the paper currency of the Province on a stable basis, as one of the conditions of his taking up office. This request is said to have been refused. A Kuangtung deputy now in New York, Liao Feng-shu has concluded a contract with a firm in that city for the printing of a large number of new notes and $8,500,000 worth of these are expected to arrive in July
(1913).
11.
Government measures to prevent further depreciation. (a). In July, 1912, when the discount on subsidiary coin was at 20%, a Chinese company was granted permission to buy up notes, deposit them in a Government Bank, receive certain interest on them and exchange them at par one dollar at a time. This scheme resulted in the discount falling to 12%, but it proved impractic- -able owing to the rowdiness and confusion attending presentation
of notes for exchange.
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