Sessional_Paper_1908 — Page 110

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SUBSIDIARY COIN COMMITTEE.

Copy of Chairman's Report.

10. One of the circumstances of the present depressed condition of the subsidiary coin is notoriously the excessive circulation in the Colony of small coins struck at the Canton Mint.

11. These do not really constitute a subsi- diary coinage as there is no legal standard in existence to which they are subsidiary, but are simply an imitation of the currency of the Colony manufactured by a local Government utterly ignorant of the first principles of poli- tical economy in regard to currency. The par" value of these coins is therefore simply and solely their value as bullion.

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12. From a political point of view it would be desirable to exclude this alien coinage which is to a certain extent responsible for the de- pression in the market value of the Colony's money.

13. Also, from the retail point of view at all events, there can be no objection to its exclu- sion on commercial grounds provided that a sufficient supply of Hongkong coinage is main- tained, and there is no evidence to show that any loss or damage would occur to international trade on account of such exclusion.

14. Taking this last point first it is advised that an Ordinance be put into force giving the Governor-in-Council the powers already con- ferred on the Governor-in-Council of the Straits Settlements, with a view to the prohibi- tion 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).

Annotations by the Undersigned.

Admitted the excessive issue of British

coins is also a contributory cause.

The Canton tael may reasonably be con- sidered a standard. It weighs 7 mace 2 candareens equal to one Mexican Dollar. The coin representing 1/5th part of this tael (20 cent piece) weighs I mace 44 candareens, 800 fine.

For export purposes the value of these coins would of course be their melting value, but the same holds true of the flongkong sub. coins which the Chinese imitated. Balance of trade has to be adjusted by movements of bullion.

From a political point of view-perhaps : but from a trade point of view-no, or at least not by drastic measures.

Mea- sures which will bring about gradually and naturally a reduction of the discount on sub. coins would be better for our trade.

Nor is there any evidence in para. 8 as to the extent of loss under present con- ditions.

Opinions must vary considerably but it will be admitted that commercially we are largely dependent on the trade of China and particularly that of Canton and anything calculated to interfere with free intercourse between the two ports will be detrimental to our trade. If possible keep currency inter-change- able between the two ports.

Point referred to not admitted (see note on para. 12). Para. 11 states that the Canton Tael is not recognized as a standard yet it is now proposed to re- gard Chinese Cash as a standard.

It must be admitted that we are quite differently situated to the Straits: they only took this step after they changed their standard.

This Colony is not in a position to main-

tain a currency of its own.