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LEGISLATIVE COUNCIL.

A meeting of the Legislative Council was held in the Council Chamber tast Tuesday, Present His Excellency the Officer Administering the Government, Mr. F. H. May, C.M.G., Elon. Mr. A. M. Thomson (Colonial Secretary), Hon. Mr. C. Mcl, Messer (Colonial Treasurer), Hon. Mr. H. H. 1. Gompertz (Attorney General), Hon. Captain F. J. Badelty (Captain Superin tendent of Police), Hon. Mr. W.-Chatham (Director of Public Works), Hon. Mr. A. W. Brewin (Registrar-General), Hoa, Dr. Ho Kai, M.., c.M.O, Hon. Mr. E. Osborne, Hon. Mr. Wei Yuk and Mr. A. G. M. Flatcher (Clerk of Councils).

ABSENT.

His Excellency the General Officer Com- manding the Troops (Maj. Gen. Broadwood, C.D.).

Hon. Mr. E. A. Hewell,

Hon. Mr. Henry Keswick.

Hon, Mr. H. E. Pollock, K.C. -

MINUTES.

FINANCIAL MINUTES.

The Colonial Secretary laid on the table Financial Minutes Nos: 37 and 32.

It was agreed that they be referred to the Finance Committee.

... PAPERS.

The Colonint Secretary laid on the table the' following papers-

THE

- SUBSIDIARY COINS.

PROHIBITION OF Alien tokens

HONGKONG TELEGRAPH FRIDAY S

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JULY 26 1907

liable to ductuale according to supply and demand,

Thoth the Hangkong and Chintsa subsidiary 'coins should ast fall ta'n discount of to per cent. At present the discount on the former in 6 10 63 per cent, kad on the latter 74 to 7 per cent.

21. On the assumptions that there is no sur RONGKONG AN INTEGRAL PORTION OF THEither production of longkong subsidiary coin, | deserves serious consideration.

IMPRACTICABLE.

CHINESE EMPIRE."

The following correspondence, as the subject of Hongkong subsidiary coins, was laid before the Legislative Council by command of His Excellency the Officer Administering the Government on the 23rd inst. 2

[Governor to Secritary of State.]

∙nge

and that the provision by China of a uniform national coinage in accordance with Asticla II of the British. Commercial Treaty signed at Shanghai on the 5th September, 11902, is indefinitely postponed, three things

may happen in the future:-

2. The committee of this Chamber are agreed that the question of the loss in the purchasing power, of British subsidiary cain, Lowever it may have been caused, is one which

of a retrospective nature.

the

3. Wahoos necessarily accepting either the statement in this paragraph as to, the netual discount at which the British coin is now reported-to-stand, or that which gives the per- centages of relative values in the past, the (The Canton mint may continue issuing emarle do not wish to question your gooctai new subsidiary coins of the present millesimal It would appear that the large demand for finedess: To this case they will fail to and "Hoogkong subsidiary' coin arose in remain at ig per cent, discount to the im- | Southern Provinces of China, and while the paverishment of the people in the Kwang Pro- Colony at the moment undoubtedly benefited vinces whose hoardings consisting of and by the then existing state of affairs, it was not earnings paid in, these coins will have lost a to be expected, that this outside source of tenth of their value. The decrease in buying revenue would continue indefinitely arda power of these people will.continue injuriously change, brought about by among other causes to affect the trade of Hongkong. The Hongan over production of Chinese subsidiary coin, kong subsidiary cops will remain at a slightly should not be looked upon as a matter calling less discount in liongkong, where the non-for legislation on the part of the Government,” acceptance of the Chicese coins by the Go vernment and banks make there of slightly less valbe in the Colony, This difference will increase, il mercantile firms follow the ex- ample that has been set by the Government 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.

(ii) The Canton mints may cease issuing subsidiary, coins. Those, they have already issued url 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.

Goveranient. Bouse,... (Confidential.) Hongkong, 23rd July, 1906. My Lord-Referring to Your Lordship's despitch No. 100 dated the 74th May, 1906, 1 have the honour to report turiber on the sub- ject of the disposal of the subsidiary coin then in the Hongkong and Shanghat Bank,

a. In my despatch No.: 96, dated the 20th The minutes of the last meeting were read April, 1900, I sinted that the rate of discount and confirmed.

on Hongkong subsidiary coin in the Canton market thee stond at about one-half to cac per cent, but that I was advised to take no action towards disposing of this coin until the result of the next selling season had been ascertained. Qo the 15th May the discount had gone up to over 4% and the Treasurer reparted that he had conaulled the chief manager of the Hongkong and Shanghai Bauking Corporation who had stated that the prospects for the sale of the cain were not improving The Canton rice crop had been seriously damaged by floods, it was feared that the silk might alan lave suffer. rd, and Chinese brokers considered that, in view of the manner in which dollars had been- (in) The Canton mint mnay issue, subsidiary replaced by Chinese subsidiary coins in the epins of lower" millesimal fineness than the present ones. This would result in a further Kwang Provinces, there would be no chance of Hongkong subsidiary coins being required in impoverishment of the Kwang Provinces for those provinces in the near future. The Trea thetensperary advantage of the Canton Treasury surer recommended that the bulk of this coin The new coins, which, to secure their accept should be re-shipped home for sale as bullion. ance, would have the same appearance as the old, Before acting on this recommendation would drag the value of the latter down with 3 discussed the matter with Mr. J. K. M.mith them. The Hongkong coins with a value in who thinught that it might be possible to dis.termediate between that of the dollar and the pose of the coin more advantageously by pale Chinese coins would tend partly to disappear in the Indian mints then buying silver und from circulation in Ching by being melted win at my request telegraphed to ascertain if down to form the present Issues, and partly to these mints would buy, On the 8th May he constitute a third standard of value for com. advised me tha the Indian Government had madities in the same way as commodities are wired from Simla that they were not prepared now beginning to have two prices according to to do this.

The telegraphic currespondence whether payments for them are made in dollars with Your Lordship and the Crown Agents of er subsidiary coins. It would be as impossible which en clafr ve sions, and paraphrases are then to prevent the new issue from being used enclosed then took place with the result that in the majority of private transactions, and following subsidiary.coins were shipped to even greater confusion and paralyzation of London per s.s. Prisien, on the 21st June; trade than exist at the present time would

20-cent pieces...$ 148,00

Report on the Hongkong Valunteer Corps, for the year April 1, 1906, to March 31, 1907. (No. 3 af 197)

Correspondence on the subject of Hongkong Subsidiary Coins. (Ne, 32 01.1907.)

Dispatch from the Secretary of State with regard in the Report of the Committee of Inquiry in connection with the typhuon of the 18th September, 1906. (No. 33 of 1907.)

FIRK AND LIVE INSURANCE COMPANIES.. The Attorney General moved the second reading of the Bill entitled an Ordinance' re lating to Fire and Life Insurance Companies. He stated that the intention was to bring the law Hongkong into line with that of Eng- land,

"The Colonial Secretary seconded.

Agreed.

• The Bill went through Committee, 'was re- ported to the Council with amendments.

NEW FOREIGN BANK.

The Attorney General, moved the second reading of the Bill entitled an Ordinance for giving to a foreign company called the Netherthe landsche Handel Maatschappij certain facili ties for carrying on its business in the Colony,

The Colonial Secretary seconded.

The Council went into Committee on the Bill which was passed.

The Attorney General moved that the Bill

be read a third time.

The Colonial Secretary seconded and the Bill was read a third time and passed.

The Council adjourned till Friday at 2.45 p.m.

FINANCE COMMITTEE.

A meeting of the Finance Committee was held immediately alter the meeting of Council, the Colonial Secretary presiding. It was unanimously agreed that the following minute be recommended for adoption by the Coun- cil:-

TYPHOON EXPENSES.

A sum of one thousand one hundred and fifty-five dollars in aid of the vote, Sanuary Department, other charges, lyphoon expenses,

POLICE.

A sum of one thousand dollars in aid of the vate, Police and Prison Department, - Police, ather charges, for the following items:

Recret service... $700 Subsistence of prisoners... 300

$1,000

This was all the business,

HONGKONG WAIBR" FOLO SHIELD COMPETITION.

—FIRST ROUND

There was again a large number of spectators gathered at the V.R.C. enclosure on the 19th inst. to witness a couple of interesting

10.

3,250,000

$3,398 coo

leaving in the hands of the Colonial Govern. ment

to-cent pièces," Copper cents,

5:

"

$100,000

167,102. 76920

$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 various wild suggestions for its rehabilitation were put forward.

I enclose a copy of correspond- ence between Mr. E. Usborne, M.1.C., secte tars to the Star Ferry Company, Limited, and Mr. E. A. Hewell, M.L.C, chainman of the Commerce, in which the Chamber dealt dis committee of the Hongkong Chamber of . CH

treetly with the suggestions that they should move the Governprent to legislate in the matter

ensie.

1. regret that I can suggest no useful action that can be taken by the-Hongkong Government in this matter beyond laying down the principle that they will nos again engage in the trade of supplying China with token coins at their face value and beyond do ing their utmost to persuade the Cantonest authorities to restrict their production of such coins.

14. shall keep Your Lordship informed of further developments in the matter of Chinese subsidiary currency.—I have, etc.,

M. NATHAN.

[Letter from Star Ferry Company.]

goth April, 1906. Sir,- liave the honour to` dinw the "Cham- bera attention to the recent fall in the value of British subsidiary coins by which this Com basis, are losing heavily. pany and others whose business lies on a cash

2. And apart from loss to individuals the matter is, 1 submil, of sufficient importance to

The second put under this head seems to imply a change in the difference of fineness between the Hongkong and Canton subsidiary coin of the present un compared with that of the past, but of this, the Committee have no evidence.

4/5. It must be admitted that the over- production of Chinese subsidiary coin, bas resulted in a depreciation and, has also reduced the demand for Hongkong coin, but it is an error to suppose that a debtor can 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 $1,00. If payments are accepted in Chinese coin, or Hongkong cuin 'in excess of the legal limit, this is entirely a personal matter between debtor and creditor and a presumably due to cause not lo he controlled by Ordinance, being merely an ordinary business question for consideration when fixing the price of commodities.

6/7. The developments foreshadowed in paragraph 7 are problematical. The com.. mition of the Chamber, while viewing the excessive production of silver and copper coins by the Chinese Mints as calculated to seriously affect the prosperity of that mpire, 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,

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Chinore money as change! The Guvainment Colony and at the same time would deal a sc should take this matter is hand, for the "evil is Falous if not martat blow to the large tikffic and rapidly... becoming worse, Singapore and petty trade which goes on between Hongkong French Indo China decline sedmn any silver and Canton, As Your Lordship is doubtless money to be circulated within their borders aware some 4,000 people daily come and to but their own, and refuse to allow any outsiders between the two places. For currency pur- to participate in their lawful profit on minting poses Hongkong is and must remain an inte- and circulating coinage. Of course we shall gral portion of the Chinese Empire and it is be told that owing to the proximity to dear old na more possible to, exclude Chinese subsidi. Cauton it would be impossible to restrict the Fary coins from the Colony than it is 10 exclude: importation of foreign-coinago--but the fact dollars and establish.a gold currency there. remains that the present arrangement is bad 7. As regards, the second proposal of the

is a hardship and our Government has Board that this Government should "give in never itled to check it. It might tty."

structions to their officials not to lender A fact, however, that does not appear in the Chinese money exchange for Hongkong.

and which the Board have unly que coinage", 1 piesume dollars and notes are lo- above; le mot is that, owing to a decreused tended by Hongkang coinage. Such instruc demand for, British coins in the interior of tions are already in force and breaches of them China, the same are at a heavy discount in must be rare, as none has been brought to my Hongkong. The Board are of opinion that it notice. I have, etc., is far from desirable that Bitish coins should

M. NATHAN be at a discount in a British Colony.

When the attention of the Board was first Officer Administering the Government to drawn to the matter, they were under the im pression, that the Chinese coins were legal tender, but on inquiry the Board find that this.

is not the case. "

The Company's manager in Hongkong has mentioned the matter to His Excellency the Governor, who advised that the only remedy which 10 bis mind could prove efficacious was for every persons trading in the Culony to de- cling to accept any other coinago except that of the Colony..

The Board have instructed their manager to by 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 obtaining united action.

1

Secretary of State.]

[Confidential)...

Government House, Hongkong, 37th April 1907 My Lord,With reference to Sir Matthew Nathan's confidential, despatch of the 5th in- stant and previous correspondence, I have the honour to represent to our Lordship that in my opinion the time has ́ arrived for this Government to take some steps for the rehabilitation of the subsidiary coin of the Colony.

2. To say nothing of private, firms; the Go- vernment alone is regularly losing a large amount on account of the receipt as revenue of sums of subsidiary.coln tendered in accord. ance with legal requirements, such amount of course varying with the rate of discount which has been as high as 10k per centum. At pre sent, however, there has been an improvement in the rate which has fallen 10 64 per centum presumably on account of the near approach of the silk season'in the Canton province, but it anticipated that with the close of the season the coin will flow back to Hongkong,

he Board, therefore, respectfully submit to your Lordship that it would be possible:-7 (a.) For the Hongkong Government to make Auch coinage illegaland to abolish it in a similar way to that which the British Gois vernment adapted some years ago in get ting rid of the Continental copper colonge which was tendered to so great an extent in the United Kingdom,

..and

; ןי י

(b) in any case for the Hongkong Govern- ment to give instructions to their officinis not to tender Chinese moley in change for Hongkong coinage.

In conclusion, the Board venture to trouble your Lordship further by showing how hardly the master operates in this Company.

3. With a total issue of our $40,000,000 wirth and with the Colony's population under 400,000 it is obvious that there has been issued a great excess over legitimate requirements; though, so long as our subsidiary coin was practically favoured as currency in the pro vinces of South China, no evil effecti

resulted:

Naw, however, which the enormous issue of small silver coins from the Canton and other mints our coin is being displaced in Chipa.

It is considered that a sum of about 15 lakhs of dollars of subsidiary coins would be ample for the requirements of the Colony's business fora period of years, and that an issue of ander $100,000 per annum would be quite sufficicat to provide for deficiences in the amount arising from loss, wear and tear, &c., and for any prob- able increase in the population, after the cur- rency has been put on proper fooling.

For the year ended 31st December, 1905, the Company's total receipts in Hongkong amounted to £25,931 and of that amount lost £486 through being obliged to sell the silver coins at a discou, a less of nearly 1%

For the four months ended 3th April, 1905, the Board are informed that on the Company's receipts of $88,137 the similar loss has amount- ed to $3,488, or nearly 4%, which 'confirms the

4. It is therefore highly probable that, allow- information as to the further depreciationing for a great dimintition in the total amount which is taking place in coinage,

already issued (on account "al lost, wear nod tear, conversion into ornaments, &c.) the aniount which might be expected to be finally retained on our hands would come to the neighbourhood of twenty millions, an excess over requirements of over eighteen millions.

8. The existence of the Provincial Bank 51.0 note is of course keown. It now bears a special stamp to the effect that it is redɛem. able in 10-cent pieces, It is noteworthy, how. ever, that the $5.00 notes are yint so stamped..

After carefully considering the question 9. the committee of the Chamber are of opinion that the only course likely to influence te- medial measures is to communicate with the Chambers of Commerce at Shanghai and Tientsin with a view to sending another joint Memorial to the Diplomatic Body at Peking urging that the Imperial Government should again be called upon to carry out its tre ty-1 have, elc, obligations, and by placing all the mints under one control, produce a standard coinage for the whole Empire and so do away with the over-production of subsidiary coinage for which the various Provincial Authorities, Bre now responsible.

that British subsidiary coin should be made in. With regard to the suggested remedy legal tender up to any extent and that the Government should piedge itself to redeem all such coins at par, the committee of this Cham- ber are altogether unable to endorse such a

see their way to make any representation to the Hongkong. Government with regard to legislation-i have, &c.,

EDUERT A DEWETT,- Chairman,

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In view of the imp rtance of the subjeer to the trading community and the desirability of such a state of affairs no longer prevailing in a British Colony, the Board beg to reiterate their hope that your Lordship will be able to initiate such meatures as will dispose of the difficulty.

H. W. C. WERWER, Secretary,

The Right Honourable

THE EARL OF ELGIN, K,G,

[Govern to Secretary of-State,]

[Confidential] Government House,

No rehabilitation of currency in such cir cumstances can possibly take place without expenditure on the spari of the Government and therefore submit for Your Lordship's consideration the following suggestion.

5. At present this Government is receiving in the collection of revenue the sum of alfout $10,000 monthly in the form of subsidiary coin.

hi coin is paid into the bank on Govorn ment accou-l at its face value and at the end of the month. Government prys to the Bank the difference between soch valve and the value at the rate of the day

This chtails EL regular expenditure of some thing under $1,005 every month, and the .

and that British coins should be rehabilitated | the Colony at large to warrant the considera. I proposal, nor can they as matters now slaad 12 dated the 27th June, 19.6, enclosing.& copy subsidiary coin so dealt with still remalon

and protected by making them legal tender option of your commitee. to any amount, to the exclusion of all other coins, and by Government pledging itself to redeem all its coins at par.*

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 párity of value with the dollar; whilst British copper coins as measured in Chinese silver coins were at a premium varying from z to 4 per cent. British subsidiary silver coins are now quoted about 5% di

discount and copper 9%.

5. alio 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 ply. Before using this reply to be made hind consulted the managers of the Hongkong and Shanghai-Banking Corporation, the Char-The-former-disparity between British_and_ tered Bank of India, Australia and China, Chinese coins, was, I understand, due to a and the Mercantile Bank of India and had difference in fineness.

4. Recently the Canton silver coin has shewn obtained from them the opinion. I had antici

of more importance to Hongkong, has apparent by dragged the British coin with it, the reason assigned being that the debtor, finding he can discharge. his liabilities in the baser coinage, has no further use for the higher,

Hon. Mr. EDWARD OSBORNE,

Secretary, Star Ferry Company, Limited.

`[Secretary of Stute to Governor,į Dowing "treet,

27th June, 1906.

· Hongkong,, 26th July, rget My Lord, have the honour to acknowlege the receipt of Your Lordship's despatch No.

of a letter from The Electric Traction (om. pany of Hongkong, Limited, with regard to the circulation of Chinese subsidiary coin in longkong and requesting a report from me 4. this matter.

2. Before receiving this despatch I had al- ready addressed Your 1.erdship confidentially on the rd instant on the subject both of 'British and Chinese subsidiary coins and stated that--had taken the only step-ibat, appeared to me possible in the matter and likely to be effective in checking the fall in the dollar y Jue. of these coins and in' eventually rehabilitating them.

lable for circulation.

propore therefore that in future alt such money collected be placed to credit of the Treasury subsidiary coin stuck account, and that when a sufficient amount is so stored it should be sent home to be disposed of by the Crown Agents. This will entail an expenditure cm account of less to the amount of about

$10,000 per annum which is, however, set off by the saving of the present monthly payments to the Bank.

matches, in connection with the Polo Shield pated and the only one which it was possible tendency to fan her depreciate and, what is Traction Company of Hongkong, Limited | z8th May, 1706, to the Star Ferry Company's onwards be treated in the manner suggested.

competition.

for them to give.

6. This Government having decided to get V.RC. "B" THAN VL RH.K.Y.C.

aid of its sinies of subsidiary coinage by return This match was first played and ended in avery ing them to England as bullion instead of sell easy victory for the Royal Hongkong Yacht Clubing thein Incally the market rate of discount, In the first half Beattie and Linton scored the

and thus avoid any further ́action tending. In first two goals. The second half proved very depreciate the coins already in currency, felt exciting and there was a wild scramble for the justified in suggesting to H. M. Chargé d'Affaires ball. Biden went so far ns to forget himself at Peking that should an opportunty offer he and scored a goal with both hands right in might approach the Wai Wa Pu with a view in front of the goal which caused a lot of merr instructions being insted to the Viceroy at ment. The score was disallowed by the Re-

Canton which would result in some restrictions force. Then the VRC team were allowed being put no the issue of subsidiary cains from 'a free throw, but it did not take Carpenter the mint there. This i did in the letter of which long to bring the ball back from the other side

a copy is annexed.. To this letter I have nal of the bath. During this time there was no yet received a reply. body marking him, and he succeeded in scor ing the third and last goal. Thus the game ended in a win for the Royal Hongkong Yacht Club by 3 goals to nil

The V.R.C. men made a disappointing show, and if the Yacht Club men kept a bit cooler, they might no doubt have scored twice as many goals as they did. The teams bere as follows V.R.CA"B" Team:-F Roza, A. J. V. Riberio, J. M. Lopes, C. A. Rodrigues, 1. Le Breton, E. M... Remedios and J. W. Bains.

R.H.K.Y.CF Bideo, G. G. Franklin, R. W. Lester, E. W. Carpenter, R. B. Beattie, J. W. Wishart and Linton.

.CORINTHIAN vacht club VI. MIDDLESEX

"B" TEAM.

This proved to be a very easy win for the Corinthian Yacht Club. In the first half they started off with six goals to their credit and ated another five in the second half, and the game ended in a win for the former team by greatly increased, but for the splendid keep log of the goal by. Private Resdall." Wit- chell, Humphreys, Cooke and stifler were the scorers for the Corinthian Yacht Club.

31 goals to all. The score would have been

The teams were as follows Humphreys R. C. Witchell, E. Humphreys, C. C. J. Cooke, J. Miller, L. Scriven and

Forbes.

Middlesex "B" team:-Private Resdall, Private Warner, Cp. Duncan, Private Moss, Cp. Pecking Private Werlay and Private Cooper,

5. Following immediately upon the minting in Canton of copper coins, the British one-cent piere sank to the level of its Chinese counter- part and, it is assumed, for the same reasons as led to the fall of silver.coins.

6. So far the Canton officials have apparently heen satisfied with a moderate difference, in fineness between their coins and the British. If their object be to drive the latter out of circulation in their country, their action is at lens intelligible and, provided competition 7. 1 further took the opportunity of the pre-between the respective coins remains as at sence here of the Imperial Chinese High present, doubtless matters will right themselves Commissioners from Europe' in Hongkong 'na at no great loss to anyone but the Hongkong the 9th inst, on their way to Peking to present Government my view of the matter to Mr. Tsa Pung Hung, first Secretary to the Commissioners,

7. But if rapacity be the mainspring of their policy the question becomes serious for unless nipped in the bid, this debasing process will grow to large and ruinous proportions, and to the prejudice of Hongkong's trade. Each successive official will seite the golden opportunity until hopeless confusion and loss bring matters to a crisis.

8. To make matters worse, Chinese dollar note has recently appeared in the Colony and is actually in circulation at Capton.

Sir-1 have the honour to forward to you the enclosed copy of a letter from the, Electric. with regard to the circulation of Chinese sub sidiary coin in longsorg.

2. & should be glad if you would furnish me with a report on this matter.I have, &c.,

ELGIN.

The Electric Traction Company of Hong.

kong Limited.

19, St, Swithin'T Lane, London, E.C. 19th June, 1966. My Lord, I am directed by any Board to place before your Lordship certain facts in re- gard to Chinese subsidiary coinage circulating in Hongkong, and to ask your Lordship to consider whether it would not be possible for the Hongkong Government to inke some action to alleviate what is a heavy tax on the trading community in Hang ong and which affects us parncularly as a Tramway Company owing to the large number of small coins which are tendered to as in fares.

We believe that the fallowing extract from the South China Morning Post of the th March, 1906, seis out the facts accurately and will place your Lordship in possession of the material points so far as the Chinese coinage

is concerned!--

8. I also suggested in Mr. H. Hunter, who had taken the place of Mr. J. R. M. Smith as chief manager of the Hongkong and Shanghai Bank, the advisability of sending a gentleman from the tank to Canton to put before the Viceroy's secretaries for communication to the Viceroy the difficulties that the large issue.of of subsidiary coins had already created and the denger to the commerce and finances of the Kwang Provinces which; must alfend any further issue. Mr. Hunter agreed and the Consul-General at Canton was good enough to arrange for Mr. I. C. Peter of the Bank meet ing on the 13th inst Tantai Wen, the Vice roy's secretary, two Chinese officials from the Mini and onc from the Board of Reorganizy- tion. The result, of this meeting is set forth in pete. The melo cand minorum by Mr. mentorandum is not printed.] Mr. Hunter in forwarding this memorandum to me 10. As regards a emedy L venture to suggest coinage, for the simple reason that being of stated that he thought it too probable that the Viceroy would prefer in ga on turning out suh sidiary coins until it was plainly more expensive immediately than shutting down the mint. 1 have not yet however received from Mr. Maos- field the promised expression of the Viceroy's views in the matter.

The Annexed

*

*

So far the fixture for the Second Round is: Wednesday, the 24th, and the Corinthiau Yacht Cluby. Royal Hongkong Yacht Clubbing to show the presence of Booo8 parts of on Friday, 26th inst.

COMPETITION TABLE.

10. I may here mention that the millesimal figeness of the Chinese coins is practically the same as ours, the mean result of analyses of 23 of these coins made by two different analysts

silver in 1,000 parts of metal, the fineness: of Hongkong coins as laid down by proclamation being Bo. The millesimal finènent of the Played Won Lost Drawn Points dollar being 900 there seems no reason why

Nitr.-The practical effect of making wigkong sul sidiary coin unlimited tegal tender would be to debase the cuarzocy; and to lower the monetary standard of value from be intrinsic value of the dollar to that of the subsidiary cola. The redemption of jiongkong subsidļary coln at par would be an extremely costly operation which would prove levy Laurden on present taxpayers, while it would Leset principal. ly Chilaese moneý changyis la Chlon sad slaswkaza.

V. R. C. * A *..... 1

87th Co., R. G.A, I

R. H. K. Y. C._.

Corinthian Y. C... 1

RE. "A"

R.EB

V. R. C. "B

Middlesex "B",

O

+ 3

a

[

I

Q

I. O

1

1

1

ת

9. If your Committee consider there be cause for alarm, doubtless they will move the Govern ment to legislate in the matter and now that the Government's profit on subsidiary coins is endangered (for if there be no demand there will be ao further coinage, and consequently an further profit) perhaps their former reason for a policy of nap-interference will no longer weigh and there may yet be time to frustrate

3. The Chamber of Commerce's reply of the letter of the 30th April, 1906, copies of which applicable to the case of formed enclosure a to that despatch is equally Electric Traction Company and I suggest that a copy of the correspondence be sent to the secretary in the latter company for the information of his

Board,

5.

Pending Your Lordship's decision in this instter I have given instructions, that the amounts paid in from the current month

with receipts of subsidiary coin in the manner I may add that a proposal for dealing indicated was submitted to Sir M. Nathan be fors bis departure and that he was in favour of adopting the proposal.I have, &c.,

·F. H. MAY.-

[Telegram from the Officer Administering the Government of Hongkong to the Secretary of State.],

27th June, 1907.. Referring to my confidential despatch of 27th April is proposal approved?.

MAY..

Velogram from the Secretary, of State to the Officer Administering the Gavronment af Hongkong.]

In addition the Hoogkong Government bas succeeded in convincing the Authorities at Canton that suspension of the coinage of their subsidiary coins is necessary, and has induced them to suspend it temporarily. Endeavours

4 The Board believes that the extract from the South China Morning Port of the 27th March, 1996, sets out the facts (respecting Chinese subsidiary coinage) accurately. This ns Your Lordship is aware from my previous communication is oot entirely the cake. The fact that the public see very little of Hongkong small coinage is not due to "the simple reason that being of higher value than the Chinese coin it goes Into the interior and does not re- turn, unless in the shape of Chinese pieces after being reminted.". The Chinese subsidiary coins are of the same intrinsic value as the Hongkong ones; the latter have of late been returning to the Colony in greater numbers

27th June, 907 than the banks can put on the market ;and it is Your telegram of 17th June. Proposals ap- dollars and not the more heavily alloyed Hoog proved. kangsu sidiary coins that are melted down inthe

ELGIN, Canton wint to make 23-cest pieces. Again the reference to the Viceroy of Canton rolling

Note. The above indicates the action the The Chinese subsidiary coinage nuisance the Hongkong Government of their profiten the Hongkong Government is taking to rehabili is becoming worse than ever. These coins circulation of subsidiary coinage and to the sate its subsidiary coinage. It may be possible are pouring into the Colony from the interior duty of that Government not to allow any out--from time to time to find means to accelerate

the withdrawal of its subsidiary coins. and the Banks accent them, reluctantly, at a siders to participate in their Inwful profits on discount of $45 on the $1,000, Firms band minting and circulating coinage are quaint, ing large sums can protect themselves by dis considering the profits the Colony has made counting payments at the Bank's rate but the from furnishing the Kwang Provinces with hardship falls on the poorer people, the small oken coins. The statement that it is flowing dealer and the purchaser. The Tramway and to the scarcity of Hongkong money" that the Ferry Companies must also sustain beavy public have nothing but Chinese coins in their losses an. this debased coinage, and surely possession is incorrect, as the public can obtain as much Hongkong subsidiary coinage at the something can be done to check its circulation. The public see very little Hongkong small bankasthey desire. Therefusal of the lost Office and other departments of the Government to higher value than the Chinese coins, it goes

accept Chinese coins is of course Justified by into the interior and does not return, unless in these not being legal tender. The example of THE WHANGPOO CONSERVANCY. the shape of Chinese pieces after being re such refusal if generally followed by such com- mined. As we have pointed out previously panics as The Electric Traction Company of

According to a Nanking despatch the Sheng- and repeatedly, not only is the Viceroy of Can Hongkong woold tend to check the circulation hai Taotul has asked the Viceroy at Nanking ECWARD OBBORNE,

ton robbing the "Hongkong Government of its in the Colony of the Chinese subsidiary coins, to find sufficient funds for the Whangpod Con- Secretary.

profits on the circulation of subsidiary coinage, 5. In that part of the company's letter which | servancy by presenting the statement of but his cheaper substitutes are driving British Inlines the astounding quotation from the accounts. Commencing from 7th moon of Hon. Mr. E. A. 'HEWETT,

coins out of circulation in the Colony, and the South-Ching Morning Post from which I have next year to the 6th moon of the 37th year of Chairman, Hongkong Chamber of Commerce.

public when paid for one British daftar five quoted the Board rightly recognise that it is Kwanghu there will be a shortage of 1,300,000 Twenty-cent Kwangtung pieces are actually los not only the Chinese but also the Hongkong acis per year. It is proposed to borrow the Hongkong General Chamber of Commerce.ing 43 cents equal to 54.50 discount on the subsidiary coins that have fallen in value funds from the Hupu Bank and Imperial Bank Hongkong, 28th May, 1905, $too. Chinese servants and workmen natural though they seem not to be aware of the main as well as the native merchants' for a term Sir, I have ackeowledge the receipt of ly refuse the Chinese subsidiary coins on cause of this fill-the over-issue of Chinese of 15 years. The Hupu Bank has consented your letter of 30th ultimo in which you direct account of the loss they would sustain coins by the Canton mint and the correspond to lend one million taels but the Imperial Bank attention to the loss sustained by your com- Whilst the local Government offers no proing shortage of dollars from which these colos has declined, and the native merchants have pany and others through, what, vou term, the tection to the public, and allows the Chinese have, at any rate partly, heen produced. not given any reply. On the other hand, ow- fall in the value of British subsidiary coin, and authorities to appropriate its profits, it curious. 6. Of the two proposals of the Board the ing to the prohibition of opium smoking the first, namely, that the Chiness coluage should | funds first proposed to be raised out of native to inform you that your letter has received the enough refuses to allow the Post Office or careful consideration of the committee of the other departments to accept, Chinesa coins, be made illegal and abolished is not practic nnium dues will become less annually and affer ten years there will be no revenue, from greatly to the inconvenience fibe public who able. Chinese coins are not legal iender in Chamber of Commerce,

frequently have nothing but. Chinese coins in Hongkong and it is open to everyone to refuse this source. Thus Viceroy Tuan Fang has their possession owing to the scarcity of Hong to accept them, bot to make it punishable by asked the Board of Finance to instruct the kong money. At the same time it often law to possess such coins or to offer, or accept lupa Bank to give help in fading fanda for. happens that the same department tenders' payments in them would fill the gaols of the the Whnogpoo Conservancy.

the evil in its incipient stage..., that British coins be rehabilitated 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.-'I have, etc.,..

In the first place owing to the fact that legal tender of subsidiary coin is limited and but intrinsically it is not worth so much as the currency dollar, lise change value is naturally,

are being made to make such temporary suspen- sion permanent for a period of years. At the same time an effort is being spared to urge in the proper quarter the institution of a national, coinage in China,

"