Sessional_Paper_1908 — Page 117

Questions.

20

Answers.

IMPORT OF COINS WHICH ARE LEGAL TENDER.

8. Refusal to admit our own coins would seem to amount to repudiation, against which the Committee is unanimous (see note of Minority on para. 9 of Majority Report). Some members suggested a five years' period of grace after which there should be repudiation. I understand this proposal was abandoned by all?

9. It must be remembered that we have inade a profit of two millions on putting these coins into circulation. In view of these remarks are the Committee prepared to withdraw these words from the Draft Bill ?

EXPORT OF LEGAL TENDER COINS.

10. Are the Majority unanimous in thinking prohibition of such coins to be expedient or necessary except as a measure of reciprocity in case the Two Kwang provinces undertook to prohibit export of their coinage--which would be impossible and chimerical ?

11. The object being to rehabilitate our coinage, decrease by exportation would be ad- vantageous and it is highly improbable that export to any large extent would take place, as in former years, now that China is flooded with a subsidiary coinage of her own?

12. It is in fact admitted that the danger lies the other way, vi., of an influx of Hong- kong coins from China when their value approaches par here?

13. Prohibition of export would be difficult to enforce ?

14. The proposal to prohibit export is II presume ineant to apply only after Hongkong coins reached par ?

CIRCULATION OF PROHIBITED COINS.

15. Para. 14 of the Majority Report as amplified by section 3 (3) and section 6 (5) of the Draft Bill appears to require some fur- ther explanation. Persons (under section 6) may legally import 'specified quantities of "prohibited coins ", and presumably under the licences referred to in section 6 (3) further quantities might be authorized. How then can the Police discriminate between the coins circulated after legal import, and those cir- culated after illegal import?

16. Clearly the only resource available to a person who has legally imported "prohibited coins" (viz., in quantities less than those pre-

Yes: the proposed time limit was aban-

doned.

This is for the Majority to say-the Mino- rity had no hand in drafting the Bill. In our opinion coins that are legal ten- der cannot be prohibited unless we are prepared to face the stigma of repudia- tion. It would be difficult to prevent smuggling.

This is a question for the Majority to an- swer. The Minority are of opinion that the export of legal tender coins should not be prohibited.

The export of any large amount in the ordinary course of trade seems now improbable and can therefore have little infinence on rehabilitation.

Admitted, but such an influx would not take place if by arrangement the dis- count on both British and Canton sub. coins was gradually and simul- taneously reduced.

Agreed.

For the Majority to answer.

Impossible.

A large demand for Hongkong sub. coins would reduce the percentage of dis- count on these coins. If, by legislation,