CO129-504-10 Currency system- premium on bank notes as compared with British silver dollars 10-1-1927 - 30-8-1927 — Page 29

Appendix.

1.

29

The cost of minting in London and bringing British

dollars to Hong Kong is at present

Brokerage in London

•125%

Freight

•625

Insurance

125

Wharf dues and sundries

125

Seigniorage

Interest

2.

5

3.5%

2.

The silver parity of the British dollar may be found

from the following chain rule formula

? pence

1 British

480 grains

925 fineness

=

1 British dollar

415 985 grains

Ounce

London

900 fineness Hong Kong dollars

1 Ounce

Constant is 343212

London price of standard silver

The price of standard silver in London on 16th

December 1926 was 24 13/16 and the silver parity of the British

dollar on the above formula was 20.922 pence.

The exchange market rate for Hong Kong currency on

17th December was 23.75 pence (1/114) a premium of 13.5% over its

silver parity.