1907-07-23 — Page 5

SUBSIDIARY CO NY.

PROHIBITION OF ALIEN TOKENS

IMPRACTICABLE. ·

CHINFBB KMPIRE, S

THE HONGKONG TELEGRAPH TUESDAY JULY 23, 1907,

Consul-General at Canton was good enough to arrange for Mr. J. C. Petar of the Bank most ‚ing on the 13th inst. Tactal-Wen, the Vice

ray's secretary, two Chinese officials from the Mint and one from the Board of Reorganiza hongkong an integral PORTION OF THE tion. The result of this meeting is set forth in the annexed copy of a memorandum by Mr. Peter. ['he memor odam is not printed.] Mr. Hunter i zipiwarding this memorandum to me stated that he thought it too probable that the Viceroy would prefer to po na turning out subs sidiary coins until it was plainly more expensive immediately than shutting down the mist, have not yet however received from Mr. Maba field the promised expression of the Viceroy's views in the matter

The following correspondence, on the subject of Hongkong subsidiary coins, was laid before the legislative Council by command of His Excellency the Officer Administering the -Government this afternoon -

|

•

6. So far the Canton officials have apparently With regard to the suggested' ramedy. been satisfied with a moderate difference in that British subsidiary-cola should be mado fiueness between their coins and the British, legal tender up to any extent and that the If their object be to drive the latter out of Government should pledge itpoil to redeem all circulation in their country, thojf action is at such colui'et par, the committee of this Cham least intelligible and, provided competition.ber are altogether unable to endorse such a between the respective coins remains us at proposal, nor can they as matters now stand present, doubtless matters will right themse'ves see their way to make any representation to al no great loss to anyone but the Hoogkong, the Hongkong. Government with regard to Government.

legislation, have, &C.

EDBELT A HEVETT, Chairman. Hon. Mr. EDWARD OSBORNE.

Secretary, Star Ferry Company, Limited.

[Secretary of State le Governor,],

Dowing Street,

27th June, 1906. ·

7. But if rapacity be the mainspring of their policy the question becomes serious; for unless sipped; in the bud; this-debasing process-will grow to large and ruinous proportions, and to the prejudice of Hongkong's trade. Evch successive official will saize the golden opportunity until hopeless confusion and loss

ring matters to a crisis.

8. To make matters worse, Chinese dollar note has recently appeared in the Colony and

actually in circulation at Canton.

is

[Governor to Secretary of Statt.]

Goverment louse, (Confidential) Hongkong, 23rd July, 1906. My Lord Referring to Your Lordship's

10. I'inay here mention that the millesimal despatch No. loo: daled the 24th May, 1906, 1fineness of the Chinese coins is practically the same as our, The mean result of analyses of 23 have the honour to report further on the sub- ject of the disposal of the subsidiary coin then of these coins made by two different analysts being to show the presence of 500'08 parts, of in the Hongkong and Shanghai Bonk,

9. If your Committee consider there be cause silver in 1,000 parts of metal, the fineness of for alarm, doubtless they will move the Govern Hongkong coins as laid down by proclamation meni to legislate in the maiter and now at being. Boa. The millesimal fineness of the the Government's profit on subsidiary coins is dollar being goo there seems no reason why endangered (for if there be no demand there both the Hongkong and Chinese subsidiary will be he further coinage, and consequently coins should not fall in a discount of to perno further profit) perhaps their former reason cent. Al present the discount on the former is 61 to 6 per cent, and on the latter 74 to 7 per cent.

2. lo my despatch No. 9, dated the 20th April 1906, I stated that the rate of discount an, Hongkong subsidiary coin in the Canton market then stood at about one-half to one per cent, but that I was advised ja take an action towards disposing of this con until the result of the next selling season had been ascertained. On the 15th May the discount had gone up to over 4% and the Treasurer reported that he had "consulted the chief manager of the Hongkong and Shanghai Banking Corporation who had sinted that the prosprots for the sale of the

+

11. On the assumptions that there is no fur- her production of Hongkong subsidiary coin. and that the provision by China of a

for a policy of noo-interference will no longer

weigh and there may yet be time to frustrate the evil in its incipient stage.

10. As regards a remedy I venture to suggest that British coins be rehabilitated and protected to the exclusion of all other coins, and by (overnment pledging itself to redeem all its

Sir, have the honour to forward to you the enclosed copy of a letter from the Electric Traction Company of Hongkong, Limited, with regard to the circulation of Chinese sub- sidiary coin.in Blongkong.

3. I should be glad if you would furnish me

with a report on this matter.-f have, &c.,

t

ELOIN.

The Electric Traction Company of Hong.

kong Limited. 19, St. Swithin's Lane, London, E.G., 119th June, 1906, My Lord,

Am directed by my Board to place before your Lordship certain facts in za gard to Chinese subsidiary coinage circulating in Hongkong, and to ask your Lordship to the Hongkong Government to take some action to alleviate what is a heavy tax on the trading

coin were not improving. The Canton rice uniform national coinage in accordance with by making them legal tender up to any amount, consider whether it would not be possible for

crop had been seriously namaged by flouds; it was feared that the silk might also have suffer.- signed at Shanghai on the 5th September, coins al par, have, etc.,

ed, and Chinese brokeis considered that, in view of the manner in which dattais had been replaced by Chinese subsidiary coins in the Kwing Provinces, there would be no chance of Hongkong subsiy coins being required in those provinces he near future. The Treas surer recommend that the bulk of this coin should be re-shipped home for sale as-bullion, 3. Before acting on this recommendation discussed the matter with Mr. J. R. M. mith

sticle 1 of the British Commercial Treaty 1902, in indefinitely pasipoved, three things may lappen in the future -

(i.) The Canton mint may continue issuing new subsidiary coins of the present millesimal fineness. In this case they will fall to and remain at a 10 per cent, discount to the im poverishment of the people in the Kwang Pro- vinces whose hoardings consisting of, and earnings paid in, these coins will have lost a tenth of their value: The decrease in buying

"

EDWARD OSBORNE,

Secretary, Hon. Mr. A. HEWETT, Chairman, Hongkong Chamber of Commerce.

Hongkong General Chamber of Commerce.

Hongkong, 28th May, 1956. Sir, have to acknowledge the receipt of your letter of joth ultimo in which you direct

pany and others through, what you term, the

community.in Hongyong and which affects us particularly as a Tramway Company owing to the large number of small coins' which are teadared to us in fares.

-We believe that the following extract from the South China Morning Post of the 27th March, 1906, sets out the facts accurately and will place your Lordship in possession of the material points so far as the Chinese-coinage is concerned:

"The Chinese subsidiary coinage suivance

are pouring into the Colony from the interior

་

To-day's Advertisements.

GOVERNMENT, BILLS

ENDERS for SPECIE, BRITISH ́ and

Intimations

*THE

MEXICAN DOLLARS, current in this ROBINSON PIANO

Colony, in Exchange for Sterling Bills drawn at to days sight on the Lords Commissioners of His Majesty's Treasury, London, will be re. ceived by the Treasury Chest Officer, Army Pay Department, until rim, on the 26th July, 1907.

The Tenders to state the total amount (in Pounds Sterling)) and the amount for which each Bill should be drawn, but no Bills will be issued for less than £100.

covers, addressed to the Treasury Chest Officer, The Tenders to be is Duplicate, and'in sealed Army Pay Department, and endorsed "Tenders for Government Bills,"

The right to accept or reject any or all of the Tenders is reserved..

Copies of Forms of Tender can be had on application....

J. T. CARTER, Lt-Colonel, 'A.P.D.,“

· Treasury Chest Officer.

H.M. Treasury Office,

Hongkong, aznd Joly, 1907,

PUBLIC AUCTION.

(676

THE Undersigned have received instructions

to sell by PUBLIC AUCTION,

FOR ACCOUNT OF THE CONCERNED, ON

SATURDAY,

the 27th July, 1907,"at 2.30 P.M., at their Sales Rooms, No. 8, Des Vœux Road, corner of ice House Street, SUNDRY VALUABLE HOUSEHOLD FURNITURE,

Comprising: DOUBLE and SINGLE IRON. BED. STEADS and MATTRESSES, TEAK-

CO LD.

TALKING

MACHINES

AND.

RECORDS.

WOOD WARDROBES with BEVELLED New Stock just arrived

LARGE AND VARIED

who thought, that it might be possible to die. power of these people will continue injuriously attention to the loss sustained by your com- becoming worse than ever. These coins TEAKWOOD WARDROBE with BEVEL.

pose of the coin more advantageously by sale

to affect the trade of Hongkong. The Hong-

to the Indian mints: then buying silver and kong subsidiary coins will remain at a slightly fall in the value of British subsidiary coin, and and the Banks accept them, reluctantly, at a who at my reques! telegraphed in ascertain if less "discount in 11pngkeng, where the non- to inform you that your fewer has received the discount of $45 'on the, $1,000. Firms hand. advised me that the fodian. Goverüment had vernment and banks make these of slightly careful consideration of the committee .of the ling large sums can protect themselves by dis-!

these mints would buy. On the 78th May be

wired from Simin that they were not prepared to do this. The telegraphic correspondence

aceptance of the Chinese cains by the Go-

less value in the Colony. This difference will increase, if mercantile firms follow the ex-

with. Your Lordship and the Crown Agents of ample that has been set by the Government intrinsically,it is not worth so much as the Ferry Companies must also sustain heavy

which en cluir ve sions and paraphrases, art enclosed then took place' with the result that the following subsidiary'coins were shipped 10 London per Ak Preussen, on the 21st June:-

za-cent piece

$ .148;0ca 3,250,000

$3,398,000

10.

leaving in the hands of the Colonial Govern ment!

to-cent pieces,

5.

זי

Copper cents, t

.$100,000 167,:02 70,920

-£344.022

4. In the meantime, the fall in the dollar value of British subsidiary coin following that of the Chinese coins was creating some dis- satisfaction in the Colony and varinus wild suggestions for its rehabilitation were put forward. I enclose a copy of corresponds ́ence between Mr. E. Osborne, M.L.C., secre- tary to the Star Ferry-Company, Limited, and Mr. E A. Hewett, M.L.C., chairman of the committee of the Hongkong, Chamber of Commerce, in which the Chamber dealt dis- creetly with the Ausgestions that they should

and that British coins should be rehabiliinted move the Government to legistate in the matter and protected by making them legal tender up to any amount, to the exclusion' of all other coins, and by Government pledging itself to redeem all its coins at par,

5. I also annex a copy of a question on the. subject put by Mr. Osborne to the Government

at the meeting of the Legislative Council held

on. The 7th June and of the Treasurer's re-

and some of themselves in declining to receive the Chinese coins. There will also be a tendency for the Hongkong coins to return to the Colony.

(i) The Canion mists may cesse isting subsidiary coins. Those they have already issued and with them the Hongkong coins would tend gradually to recover their former dollar value as absorption took place and they became a subsidiary rather than a main cur

rency.

Chamber of Commerce.

In the first place owing to the fact that legal tender of subsidiary coin is limited, and that currency dollar, its exchange value is naturally fiable la fluctuate according to supply and demand,

-

2. The committee of this Chamber are agreed that the question of the loss in the purchasing power of British subsidiary coin, however it may have been caused, is one which deserves serious consideration.

GLASS, OVERMANTELS with BEVEL- LED GLASS, SIDEBOARD, and DINNER WAGGONS with BEVELLED GLASS. MARBLE TOP WASHSTANDS, DOUBLE LED GLASS, TAPESTRY.COVERED DRAWING ROOM SUITE, GLASS, CROCKERY und E-P. WARE, CARPET, COOKING STOVE and UTENSILS, &c.

Catalogues will be issued, TERMS:-AI usual.

1680

HUGHES & HOUGH, .Auctioneers. Hongkong, 23rd July, 1907,

NOTICE TO CONSIGNEES.

FROM CALCUTTA, PENANG AND SINGAPORE.

ÂSSORTMENT

MUSIC.

Comic Opera Scores

and Dance Music.

"LIGHTNING," having arrived from the above Ports, Consignees of Cargo are hereby informed that their Goods will be delivered from alongside.

Cargo impeding the discharge will be Janded RICEIVED BY EVERY MAIL. at once, at Consignees risk and expense.

Cargo remaining on board after 2 F.M., of the

Hongkong, 29th November, 1906, and expense.

Consignees of Cargo from SINGAPORE and. PENANG are requested to take.IM. MEDIATE DELIVERY of their Goods from alongside, such Ca go impeding the discharge of the vessel will be landed and stored at Con signees' risk and expense.

coooting payments at the Bank's rate but the hardship falls on the poorer people, the small dealer and the purchaser. The Tramway and losses on this debased coinage, and surely something can be done to check its circulation The public see very little Hongkong" small coinage, for the simple reason that being of higher value than the Chinese coins, it goes.THE Steamship into the interior and does not return, unless in the shape of Chinese pieces after being re minted. As we Hava pointed out previously ton robbing the Hongkong Government of its and repeatedly, not only is the Viceroy of Can- wofits on the circulation of subsidiary coinage. but his cheaper substitutes are drlying British public when paid for one British dollar five swenty-cent Kwangtung-pieces are actually los Hongkong subsidiary coin arose

It would appear that the large demand for ing 4 cents equal to $4.50 discount on the Bouthern Provinces of China, and while the ly refuse, the Chinese subsidiary coins on

in the $roo. Chinese servants and workmen natural Colony at the moment undoubtedly benefited account

of the lost they would sustain. by the then existing state of affairs, it was ont Whilst the local Cayemment offers no pro to be expected that this outside sourcs of tection to the public, and pllows the Chinese revenue would continue indefinitely and aauthorities to appropriate if profits, it curious. change, brought about, by among other causes ly enough refuses to allow the Post Office or an over nduction of Chinese subsidiary coin, other departments to accept Chinese coins, should not be joaked upon as a matter calling greatly to the inconvenience of the public who for legislation on the part of the Government,

frequently have nothing but Chinese coins in The second pay under this head seems to their possession owing to the scarcity of Hong- At the same time it often. between the Hongkong and Canton subsidiary happens that the same department, tenders imply a change in the difference of fineness koug money.

Chinese 'money as change! The Government in the majority of private transactions, and coin of the present as compared with that of

the past, but of this the Committee have no should take this matter in hand, for the evil is even greater confusion and paralyzation of

evidence. trade than exist at the present time would

rapidly becoming worse. Singapore and French todo China decline to admit any silver money to be circulated within their borders but their own, and refuse to allow any outsiders to participate in their lawful profit on minting and circulating coinage. Of course we shall be told that owing to the proximity to dear old Canton it would be impossible to restrict the importation of foreign coinage-but, the fact remains that the present arrangement is bad and is a hardship and our Government has never tried to check it. It might try."

statement in this paragraph as to the actual 3. Without necessarily accepting either the fill) The Canton mint may issue, subsidiary discount at which the British coin is now reported to stand, or that which gives the per coins of lower millesimal uneness than the centages of relative values in the past, the aids out of circulation in the Colony, and the 25th instant, will!ba lauded at Consignees' risk present ones. This would result in a further committee do not wish to question your general impoverishment of the Kwang Provinces for remarks of a retrospective nature. thetémporary advantage ofihè Canton Treasury. The new coins, which, to secure their occept ance, would have the same appearance as the old would drag the value of the latter down with them. The Hongkong Coins with a value in- termediate between that of the oar and the Chinese coins would tend partly to disappear from circulation in China by being melted down to form the present issues, and partly to constitute a third standard of value for com moditics in the same way as commodities are now beginning to have two prices according to whether payments for them are made in dollars

then to prevent the new issue from being used or subsidiary coins. It would be as impossible

ensus.

12. 1 regret that I can suggest and useful action that can be taken by the Rongkong Government in this matter beyond laying down the principle that they will not again ply. Before causing this reply to be made 1 engage in the trade of supplying China with had consulted the managers of the Hongkong taken coins at their face value and beyond do and Shanghai Banking Corporation, the Charing their atmist to persuade the Cantonese bed Bank of Indio, Australia and China, muthorities to restrict their production of such

The Mercantile Bank of Fadia and had ‡ coins,

and

obtaine

- from them the opinion I had antici-

pated and

for then to prep.

14. I shall keep Your Lordship informed of he only une which it was possible further developments in the matter of Chinese

subsidiary currency have, etc., 6. his Government having decided to get rid of stores of subsidiary coinage by returns!

Tefo England as bullion instead of sell. them locally at the market rate of discount, d thus avoid any further'action tending 10 epreciate the coins already in' currency, i felt Justified in suggesting to H. M. Chargé d'Affaires

M. NATHAN.

4/5. It must be admitted that the aver production of Chinese obsidiary coin has resulted in its depreciation and has also reduced the dentand for Hongkong coin, but it is an error to suppose that a debtor car discharge his liabilities in this subsidiary coin, though for sake of convenience no doubt many small debts are so settled.

No one in the Colony need accept Chinese subsidiary coin at all, while the legal limit for Hongkong subsidiary silver coin is $2.co, and for copper £1,20, If payments are accepted in Chinese coin, or Hongkong coin in excess of above, and which the Board have only quite A fact, however, that does not appear in the

the legal limit, this is entirely a personal matter recently learnt is that, owing to a decreased between debtor and creditor and is presumably demand for British coins in the interior of due to cause not to be controlled by Ordinance, China, the same are at a heavy discount in being merely an ordinary business question Hongkong. The, Board are of opinion that it for consideration when fixing the price ofis far from desirable that British coins should commodities.

be at a discount in a British Colony.

[Letter from Star Ferry Company.]

30th April, 1916. Sir- have the honour to draw the Cham- at Peking that should an opportunity offer lieber's attention to the recent fall in the value of might approach the Wai Wo u with a view to British subsidiary cains by which this Committee of the Chamber, while viewing the instructions being issued to the Viceroy at pacy and others whose business lies on a cash Canton which would result in some restrictions basis, are losing heavily. being put on the issue of subsidiary coles from the mint there. This I did in the letter of which acupy is annexed. To this letter I have not yet received a reply.

7. I further took the opportunity of the pie sence here of the Imperial Chinese High Commissioners from Europe in Hongkong on the 9th inst. on their way to Peking to present my view of the matter to Mr. Tso Pung Hoog, first Secretary to the Commissioners.

8. I also suggested to Mr. H. Hunter, who had taken the place of Mr. J. R. M. Smith as chief manager of the Hongkong and Bhangbai Bank, the advisibility of sending a gentleman from the Bank to Canton to put before the Viceroy's secretaries for communication to the Viceroy the difficulties that the large issue of

2. And apart from loss to individuals the matter is, I submit, of sufficient importance to the Colony at large to warrant the considera. tion of your committee.

3. For many years and until recently, Chin- ese subsidiary silver coins were at a discount of about 5% British subsidiary coins main tained a parity of value with the dollar; whilst British, cupper coins as measured in Chinese silver coins were at a premium varying from 2 10 4 per cent. British subajdiary silver coins are now quoted about 5% discount and copper 9%

The farmer disparity between British and Chinese coins was, I understand, due to difference in fineness,

4. Recently the Canton silver coin'has shewn of subsidiary coins had already created and the of more importance to Hongkong, han apparent. a tendency to further depreciate and, what is danger to the commerce and finances of they dragged the British coin with it, the reason Kwang Provinces which must attend any assigned being that the debtgir, finding he can

further issue.

6/7. The developments foreshadowed 'in paragraph 7 are problematical. The com

excessive production of silver and copper coins by the Chinese Minis as calculated to seriously affect the prosperity of that Empire, have no reason to assume that the Chinese Officials are actuated by other motives than the supply ing of a useful medium of exchange, for which there was, at one time at all events, a strong demand, and the making of a profit on the seigniorage as is usual in other countries making similar issues.

8. The existence of the Provincial Bank $1,02 note is of course, known. It now bears a special stamp to the effect that it is redrem abla in zo-cent pieces. It is noteworthy, how ever, that the $5.00 notes are not so stamped:

9. After carefully considering the question the committee of the Chamber are of opinion that the only course likely to influence re medial measures is to communicate with the Tientsin with a view to sending another joint Chambers of Commerce at Shanghai and Memorial to the Diplomatic Body at Peking urging that the imperial Government should

Mr. Hupter agreed and the discharge his fiabilities in the baser coinage, again be called upon to carry out its irealy Note-The practical effect of making Hongkong sabhas on further use for the higher. ́aldiary coln unlimlied legal tender would be, da delise kas

obligations, and by placing all the mints under

currency, and to lower the monetary siandard of valus from 5. Following immediately upon the minting dan control, produce a standard 'coinage for the intrinsic value of the dollar to that of the aubeldiary in Canton of copper coins, the British one-cent the whole Empire and so do away with the The redemption of Hongkong sabaldary coin at par would piece tank to the level of its Chinese counter-ovar-production of subaldiary colange for which be an extremely costly operation which would prows apart and, it is assumed, for the same reasons the various Provincial Authorities are now “burden on present taxpayers, while it would brands principaleí

† Chinees money changers in China sad nirankarn

ns led to the fall of silver coins,

responsible.

When the attention" of the Board was first

No Fire Insurance has been effected. Bills of Lading will be countersigned by the Undersigned,

DAVID SASSOON & CO., LIMITED,.

Agents. Hongkong, 23rd July, 1907,

[678

"BEN", LINE OF STEAMERS.

NOTICE TO CONSIGNEES.

S.S. "BENGLEUCH," FROM ANTWERP, LONDON AND

CON

STRAITS,

ONSIGNEES of Cargo are hereby. informed that all Goods are being landed

THE

LEADING

COGNAC

18

hazardous Godowns of the Hongkong and at their risk into the hazardous and/or extra J. & F. MARTELL'S. Kowloon Wharf and Godown Co., Ild.. whence and/or from the wharves delivery

may be obtained.

No Claims will be admitted after the Goods

have left the Godowns, and all Goods remain ing undelivered after the 30th instant, will be subject to reat.

sented to the Undersigned on or before the All Claims against the Steamer must be pre- 6th prox., or they will not be recognized.

All broken, chafed, and damaged Goods are to be left in the Godowns, where they will he examined on the 30th instant, at 13 A.M.

No Fire Insurance has been effected. Hills of Lading will be countersigned by,

GIBB, LIVINGSTON & Co., Agents. Hongkong, 23rd July, 1907.

1679.

FOR SINGAPORE, PENANG AND

4

CALCUTTA,

drawn to the matter, they were under the im.THE. Steamship pression that the Chinese coins were legal

"LIGHTNING," tender, but on inquiry the Board find that this Captain E. Fey, will be despatched for the is not the case.

above Ports, on TUESDAY, the 30th Inst., at I P.M,

For Freight or Passage, apply to

DAVID SASSOON & CO., LIMITED,

Agents. Hongkong, 23rd July, 1907.

[677

THE ROPAL HONGKONG GOLF CLUB. 1

The Company's manager in Hongkong has mentioned the matter to His Excellency the Governor, who advised that the sily remedy which to his mind could prove efficacious was for every person trading in the Colony to de- cline to accept any other coinage except that of the Colony.

The Board have instructed their manager to

try and arrange with some of the largest recipients to act as His Excellency suggests, but they fear that not only is there likely to be delay, in such a course, whereas the matter is pressing, but also that such a movement may be unsuccessful" owing to the difficulty of V obtaining united action.

The Board, therefore, respectfully submit to your Lordship that it would be possible:

(a.) For the Hongkong Government to make such coinage illegal and to abolish it in a similar way to that which the British Co vernment adopted some years ago in get ting rid of the Continental copper coinage which was tendered to so great an extent in the United Kingdom, and pat

(3) In any case for the Hongkong Govern

ment to give Instructions to their officials not to tender Chiness money in chaoge for 'Hongkong coinage, egy

[Continued on s

quarterly meeting held at Happy Valley from The following cards were returned at the the 20th to 22nd July, 1907

MACEWEN CUP, Mr. M. A. Murray 84 $—70' Capt. E. Beetham†.

***** 97-1879 Mr.A. Giltids

Lt. Col. H. N. Dambleton 83 scr.=83 (23 entries). JOHNSTONE cup.

Capt. E. Beetham ... rec..14 strokesz up... | Mr. T. S. Forrest owes Mr. M. A. Murray ......... rec. Lt-CoL B. N. Dumbleton reco Mr. A. Gittio... Tec. 2

(ay entries).

POOL.

Mr. A. Morfoy Capt. E. Beetham

all'sq,

3 down. **down.

5down.

1995-18-75 Flaw18=79 Mr. T. S. Forrest. 7842–80

: (19 sptrias);

Tie for MacEwen Cop

Winner of Jobustong Cup."

2 Winner of Fook

*

V.S.O.P.

¡V.V.S.Q.P.

-per dozen $25.00

28,00

40.00

90,00

SOLE AGENTS:

H. PRICE & Co., Ltd.,

WINE AND SPIRIT MERCHANTS,

1-11, QUEEN's Road Central,

Page 5Page 6