Sessional_Paper_1907 — Page 1017

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5. Following immediately upon the minting in Cantou of copper coins, the British one cent piece sank to the level of its Chinese counterpart and, it is assumed, for the same rea- sons as led to the fall of silver coins.

6. So far the Canton Officials have apparently been satisfied with a moderate difference in fineness between their coins and the British. If their object be to drive the latter out of circulation in their country, their action is at least intelligible and, provided competition between the respective coins remains as at present, doubtless matters will right themselves at no great loss to anyone but the Hongkong Government.

7. But if repacity be the mainspring of their policy the question becomes serious; for, unless nipped in the bud, this debasing process will grow to large and ruinous proportions, and to the prejudice of Hongkong's trade. Each successive official will seize the golden opportunity until hopeless confusion and loss bring matters to a crisis.

8. To make matters worse, a Chinese dollar note bas recently appeared in the Colony and is actually in circulation at Canton.

9. If your Committee consider there be cause for alarm, doubtless they will move the Government to legislate in the matter and now that the Government's profit on subsidiary coins is endangered (for if there be no demand there will be no further coinage, and conse- quently no further profit) perhaps their former reason for a policy of non-interference will no longer weigh and there may yet be time to frustrate the evil in its incipient stage.

10. As regards a remedy I venture to suggest that British coins be rehabilitated and protected by making them legal tender up to any amount, to the exclusion of all other coins, and by Government pledging itself to redeem all its coins at par.

Hon. Mr. E. A. HEWETT,

Chairman,

HONGKONG CHAMBER OF COMMERCE.

I have, etc.,

EDWARD OSBORNE,

Secretary.

HONGKONG GENERAL CHAMBER OF COMMERCE

HONGKONG, 28th May, 1906.

SIR,-I have to acknowledge the receipt of your letter of 30th ultimo in which you direct attention to the loss sustained by your Company and others through, what you term. the fall in the value of British subsidiary coin, and to inform you that your letter has received the careful consideration of the Committee of the Chamber of Commerce.

In the first place owing to the fact that legal tender of subsidiary coin is limited and that intrinsically it is not worth so much as the currency dollar, its exchange value is naturally liable to fluctuate according to supply and demand.

2. The Committee of this Chamber are agreed that the question of the loss in the purchasing power of British subsidiary coin, however it may have been caused, is one which deserves serious consideration.