Sessional_Paper_1908 — Page 120

23

C.

Mr. Armstrong's reply to Memo, on Report of Subsidiary Coin Committee.

Although I am not opposed to negotiation with Pekin, either as regards the Mackay Treaty, the control of the Provincial Mints, Gold Standard and the withdrawal of Chinese Subsidiary Coins, I do not think it necessary, nor do I think it will result in anything and if we are to delay action until we get anything like a definite answer to any of these points, it may be years before anything is done. The Chinese Government in Canton will doubtless coin dollars whether we ask them to do so or not. If they do not, we can supply them with all they want.

The extent to which permits should be issued must be left entirely with the Government. I should say that if a Chinese Bank or money changer wanted a permit to import $10,000 every week, it should be refused, unless the applicant can show a valid reason for requiring to import such a large amount. There should be no license fee, the poor man who, we will say, comes into the Colony with $100 in subsidiary coins to buy goods with will suffer much more by such fee than the big man who imports in bulk as a speculation, and recoups himself by the discount ruling between this and Canton. A large fee might check to some extent the overlarge imports but it would also stop people from buying goods here.

I am against repudiation now or five years hence. (What are "these words”?)

To prohibit the export of Hongkong subsidiary coin is not necessary, nor desirable, nor could it be enforced.

I do not propose that the circulation of Chinese subsidiary coin in this Colony should be stopped, if the importation in bulk is restricted the coins will go out of circulation of their own accord.

My suggestion that there should be Government Exchange Bureau to buy the coin at a rate fixed by them, was only in case circulation was prohibited.

It would be useless for the Government to withdraw any more of their subsidiary coin without making some restriction as to the importation of Chinese subsidiary coin, the more the Government withdraw the more room there is for Chinese coins to come in.

The report says that the majority are in favour of Prohibition. There is a legitimate business in Chinese subsidiary coin in this Colony not intended for local circulation which total prohibition would dislocate. Every year thousands of coolies arrive in Hongkong from abroad with their savings. Hongkong is where they start for their homes in China. They want Chinese money to take with them just as much as we take sovereigns when we go home.

22nd November, 1907.

J. ARMSTRONG.

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