Sessional_Paper_1903 — Page 527

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440

COLONIAL SECRETARY'S OFFICE,

HONGKONG, 23rd March, 1903.

SIR,-With reference to your letter of the 28th ultimo, I am directed to inform you that a copy of the Resolution therein contained will be forwarded to the Secre- tary of State for the Colonies in due course.

Secretary,

CHAMBER OF COMMERCE.

I have, &c.,

F. H. MAY.

No. 174.

GOVERNMENT HOUSE, HONGKONG, 2nd April, 1903.

SIR,-I have the honour to transmit for your information the enclosed copy of a letter from the Chamber of Commerce regarding the proposal to fix a rate of Exchange between gold and silver and so relieve trade in this Colony from the difficulties and embarrassments caused by the fluctuations in their relative value. As stated in the letter, a majority of the Chamber have at a recent meeting adopted the following Resolution: "That in the opinion of this Meeting it is desirable the Straits Currency Commission should extend its enquiries to Hongkong with a view to ascertaining whether reform of the Colony's currency arrangements is advisable."

I laid the letter from the Chamber of Commerce with the Resolution there- in contained before iny Executive Council, and was advised by a majority that it would be well to have a Commission appointed to enquire into the currency question so far as it affected Hongkong, but that such a Commission should be separate and distinct from that appointed to enquire into the question in Singapore. The Council offered no opinion on the ultimate question as to whether a gold standard should or should not be adopted for Hongkong, but advised that in the event of His Majesty's Government deciding to appoint a Commission, the Hong- kong Chamber of Commerce should be invited to nominate two gentlemen for appointment as members, one to represent that section of the Chamber which is in favour of the status quo, and the other to represent the section which is in favour of adopting a gold standard.

I enclose* also for your information copies of the proceedings of the Chain- ber of Commerce at a Meeting of the Committee held on the 23rd December, 1902, and of a General Meeting of the Chamber held on the 18th February, 1903, at which the Resolution now forwarded was adopted by a majority of 40 to 25.

As it appeared to me that the papers read on that occasion by the gentlemen who proposed the Resolution in opposition to the conclusion forined by the Com- mittee of the Chamber at the Meeting of 23rd December had been carefully prepar- ed, while the time occupied in the discussion was palpably not sufficient to admit of well considered reply, I communicated with a number of the most important Merchants, Managers of Shipping Companies, and Bankers in the Colony requesting their views on the subject. I attach their answers

which will show that, among the mercantile men who have the largest stake in the Colony, including British, German and Chinese, there is an almost unanimous feeling against any interference with the present currency so long as the Chinese currency remains what it is.

*

The arguments put forward in these various statements cover the whole ground from a business point of view, and a glance at the gold value of shares ten years ago and now shows that the gold value of capital then invested has increased

* Not printed.