CO129-523-13 Currency situation 16-6-1930 - 16-6-1930 — Page 52

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flooded with Mexican dollars, for the most part

imported by Chinese for speculative reasons from

Shanghai. The Hong Kong and Shanghai Bank reported, on the 18th of June, that its stock of

such coins had risen from well under 15 millions on

the 1st of January to about 21 millions.

Mexican dollars are current in the Colony

pari passu with British dollars, and there is no

intention at present of making any change in this

respect.

The Nationalist Government, however, has

passed a law prohibiting the import of foreign coins,

with the result that Mexican dollars, which were

here

being imported for speculative and not genuine trade

purposes, could not be returned to China. On the

recommendation of the Hong Kong and Shanghai Bank,

and with the concurrence of the Currency Committee

and my Executive Council, a regulation was made by the Governor-in-Council, providing that no person

shall, except with the express permission of the

Superintendent of Imports and Exports, import any

Mexican silver dollars in excess of $50 at any one

time.

4. As was anticipated, an application was

made in due course for permission to import certain

consignments of Mexican dollars, amounting to upwards

of $186,000, which had already been shipped at the

time of the publication of the aforesaid regulation,

but