14. Taking this last point first it is advised that an Ordinance be put into force giving the Governor-in-Council the powers already conferred on the Governor-in-Council of the Straits Settlements, with a view to the prohibition of the import and circulation of all alien subsidiary coinage whatever (imitation or other), with the exception of the Chinese Cash, (which however might possibly be considered a standard, and not a subsidiary coin).
15. It is understood that at present Government is now withdrawing from circulation all subsidiary coin received as revenue and that the Secretary of State has been recommended to permit the redemption at market value of a sum not to exceed $1,000,000 yearly.
16. We approve of this course, (which however will be a failure unless prohibition is enforced), provided that, when the coinage reaches par value, redemption should be stopped and a reserve of coin be kept in the Colony so as to prevent a shortage in the supply and avoid the possibility of the coinage being at a premium. As an additional precaution the export of Hongkong coin might be prohibited. Application for coin from such reserve should be strictly kept down to a maximum for each application.
17. It is recommended that, whatever course of action be adopted by Government, due notice be given to all parties concerned except perhaps in the case of the import of alien coins. If any hardship arose in particular instances due consideration would be given
to such.
18. it does not appear that there would be any advantage to the Colony to attempt to come to agreements on this question with the Authorities either at Canton or Peking.
19. Until China has properly initiated a currency in accordance with economic principles, no proper agreement is even possible and it is always probable that if one were entered into it would be evaded or abrogated according as profit therefrom might accrue to the authorities concerned.
20. The regulation of its subsidiary coinage is purely an internal affair of the Colony and it would appear to be, at least, undignified for this Government to rely on assistance from a Foreign Power to ensure its rebabilitation even if such assistance were practicable and forthcoming.
21. Whatever the Government can do, however, to urge the inception of a proper currency in China should be done.
28th October, 1907.
A. M. THOMSON, Chairman.
ROBT. SHEWAN.
A. J. RAYMOND.
WEI AYUK.
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