Sessional_Paper_1887-1888 — Page 130

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No. 58.

SIR,

TREASURY,

HONGKONG, 24th September, 1885.

With reference to your letter No. 1316 of yesterday's date, in which you refer to me for consideration and report a Despatch from the Secretary of State, No. 34 of August 17th, on the subject of the issue of subsidiary coins here, I have the honour to report as follows:

There is not at present any prospect of subsidiary silver coin being at a dis- count, or of any difficulty being experienced in issuing it. There is to-day a balance of $54,000 worth of these coins in the Treasury, all of which, and far more, could be got rid of in a few days by simply letting it be understood that Chinese might have as much as they liked to ask for. I hope to keep a special reserve of at least $50,000 against the Chinese New Year, but whether this will be sufficient to abate the run on small coin which always exists at that time only experience can shew.

The market prices of these coins have been as follows :--

1883, May 1st,

November 6th,

1884, May 2nd,

November 3rd,

1885, May 2nd,

September 24th,

.9

per cent premium.

1

>>

""

"J

1.4

"}

*1

"

.85 1

""

11

??

.5

>>

It will be seen that there is no tendency towards a reduction in the market- able value of the coins, in spite of the larger quantities which have been imported. It must be clearly borne in mind that we are only pouring water into a sieve, and that on the other side of the sieve is China, an enormous country with no coinage, but quite alive to the advantages of one.

Should the value of these coins at any time sink to par, shipments will be suspended.

I have the honour to be,

Sir,

Your most obedient Servant,

A. LISTER,

Treasurer.

P.S.-To-day's low rate of premium on these coins is probably caused by the fact that they are obtainable free at the Treasury, which is the exception and not the rule. Directly our balance is exhausted the rate will rise till the next shipment arrives.

The Hon. F. STEWART, LL.D.,

Acting Colonial Secretary,

(Copy.)

SIR,

$0.,

&C.

&c.

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The Treasury to the Colonial Office.

TREASURY CHAMBER,

14th January, 1887.

In reply to Mr. MEADE's letter of the 31st ultimo, I am directed by the Lords Commissioners of Her Majesty's Treasury to aquaint you, for the information of the Secretary for the Colonies, that the necessary directions have this day been given to the Deputy Master of the Mint to supply (should he see no objection) the undermentioned subsidiary coins for the use of the Government of Hongkong, to the total nominal value of $150,000, as requested in the letter under reply, viz.:

20 cent pieces

10

5

.....10 per cent.

.60 ..30

17

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