Sessional_Paper_1908 — Page 106

Para. 2.

9

C.

Reply of the 4 Members who signed A.

Notes on Governor's Minute of 20th August, 1907.

(a.) See Report A.

(b.) This would result in the exclusion of the dollar and the acceptance of the debased coinage as the standard of the Colony at its true value say 11 per cent. discount.

(c.) Mr. MANSFIELD's proposals involves repudiation which cannot be recommended.

The note issue would involve great trouble and expense.

If made unlimited legal tender the subsidiary coinage would become the standard of the Colony.

(d.) See Report A.

(e.) The community has already been informed by a Public Notification as to the true value of Canton coin.

(1) The Canton mint may always be ready to issue whenever the price makes it profitable.

The variation in the internal exchange of the Colony makes it imperative for the Government to take every practicable step towards rehabilitation.

Para. 3. The standard in any country is practically worth only its bullion value. The more alloy therefore the lower the value of the standard.

The rupee is supposed to be exchangeable in India at the rate of 15 to the £. This price is far above its bullion value and it must therefore be in these circumstances considered a subsidiary coin, or token.

Re Enclosure 2. It is essential to a currency that the subsidiary coin cannot be of the same bullion value proportionately as the standard coin otherwise it would cease to be a subsidiary coinage in the true sense.

A so-called subsidiary coinage of the same value as the standard would entail a large initial expense with constant recurrence, and is unnecessary if the present coinage is rehabilitated.

It is perfectly certain that China would never listen to the proposal.

A. M. T.

R. S.

A. J. R.

W. A. YUK.

D.

Report by Mr. J. Armstrong,

I think it is desirable to prohibit the importation of Chinese subsidiary coin without a permit from the Government.

Subsidiary coin is used principally for internal circulation: it is only the medium of exchange for goods to a small extent: sellers of silk in Canton insist on payment being made in Hongkong Currency: if sellers of sugar, etc., here are willing to accept Chinese subsidiary coin in payment, that is their affair, and their refusal to do so would in no way prejudice our general business relations with Canton.