Sessional_Paper_1908 — Page 107

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It is proved without doubt that the bulk of the Chinese subsidiary coin now circulating in the Colony has not been brought here for the purpose of buying goods, but by speculators who buy the coin in Canton at a discount with money they remit from here which they also get at a discount and are able to circulate the coin here at a profit.

While I agree to the proposal to approach the Chinese Government either direct or through our Minister in Pekin, I think it most desirable that the Government should act independently and at once, as undoubtedly time will be lost in approaching the Officials in Pekin.

I therefore recommend that the Government prohibit the importation of all coins not being legal tender in this Colony, except with a permit.

30th October, 1907.

J. A.

E.

Note by the Hon. Mr. E. Osborne who had left the Colony before the Third Meeting.

I agree entirely with the Chairman's Memorandum, as being the only practical solution of the difficulty, and consider that the Colony should either protect its currency or else relinquish it altogether, and do what Shanghai, Hankow and other commercial centres do.

At the same time, I recognise that if the Chinese. Government will withdraw from circulation some of the coins already in existence and promise to regulate its future issues so as to maintain the value of its small coin, the difficulty solves itself without any action on our part, and for that reason I would support Mr. Law's resolutions provided a time limit (say 6 months) be added, at the expiration of which if the Chinese have accomplished nothing, it is agreed that the Chairman's recommendations be adopted.

14th October, 1907.

EDWARD OSBORNE.

F.

Report by Three Members of the Committee.

We, the undersigned Members of the Committee appointed by His Excellency the Gov- ernor to enquire into the causes of the depreciation of the Subsidiary Coinage of the Colony and to advise as to what means can be taken, with due regard to the interests of trade, to rehabilitate such coinage, while admitting that the amount of British Subsidiary Coin, as estimated by the Chairman of the Committee to exist in Hongkong, is probably sufficient for the requirements of the Colony cannot admit that it is desirable, in the first instance, to take any action that might result in the further depreciation of the Subsidiary Coinage of the Two Kwang provinces as these coins form the chief, if not the only medium of payment by the Consumers of goods bought and exported from Hongkong for use in these pro-

vinces.