CO129-508-3 Minting of silver dollars 5-1-1928 - 3-5-1928 — Page 18

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3.

of the Mexican dollar that circulates in China has ceased for

many years, but the British dollar can be coined to an

unlimited extent. In Shanghai and North China the British

dollar does not circulate, the dollars in use being the

Chinese coined dollars and the Mexican dollars.

The banks in Hongkong hold very large stocks of silver

dollars as cover for the note issues.

Is there any scarcity of Bank notes?

Answer: None whatever. When it is necessary to meet heavy and

vil

exceptional demands, which are usually only temporary,

increases in note circulations are permitted against the

deposit of gold and/or silver coin. Note issues are, there-

fore, sufficiently elastic to meet all requirements.

Is there locally any difference in value (as compared

with silver parity) between bank notes, British dollars,

Mexican dollars, and silver bullion or sycee?

Answer:

This question is not quite understood. Bank notes

usually stand at a varying premium over silver dollars for

the reasons already given. There is no direct quotation be-

tween British dollars, Mexican dollars and silver bullion or

sycee. The relation between them is the melting point

one into the other. Sycee does not exist in Hongkong and

silver bullion is only bought for conversion into Chinese

sub coin in Canton.

Silver bullion is imported in very large

quantities into Shanghai for melting into Chinese dollars and