338
THE GOVERNOR'S OPENING SPEECH.
THE HONGKONG WEEKLY PRESS AND
[November 4, 1897.
by 28,933,788 Haikwan taels, or nearly throughout the world, will go a long £5,000,000 sterling. We are unable to way to compensate for the disadvantages verify these figures from the Chinese attendant upon the abandonment of silver Whatever may be said The Governor's opening speech at the meet- Customs returns, which represent the in- as effective money. ing of the Legislative Council on the 25th crease in the tael value of Hongkong's of the policy of closing the Indian mints it October will have had a reassuring effect upon trade with China at a higher figure than is impossible now to retrace the step then the community, and some curiosity may per- that stated, but unfortunately if the amounts taken. As an Indian contemporary points haps be entertained now as to why the recent for the respective years be turned into ster-out, it was one thing to keep the Indian scare about a prospective increase of taxation ing a small decrease instead of £5,000,000 mints open when they were open; it is a should ever have been raised. The finances increase is shown. On this point it would very different thing to incur the inevitable of the colony appear to be in a perfectly seem that His Excellency has fallen into an dislocation of business that would result sound condition and as trade is fairly brisk inaccuracy.
from re-opening them at this stage. To the and likely to continue so no anxiety need His Excellency refers with justifiable satis- proposals of the WOLCOTT Commission In- be felt for the immediate future. His Ex-faction to the development of local industries, din has turned a deaf ear.
Nor is the Japan Mail correct in saying cellency was able to make the satisfactory which it must be recorded to his credit he
obstacle to announcement that the charge for light dues has always done his best to foster. He that England is the only
If the pro has been reduced from 23 cents to 1 cent a ton, mentions the establishment of two large the rehabilitation of silver. and the Government is to be congratulated kerosine oil depôts, feather-dressing and posals of the WOLCOTT Commission had on having acted fairly in this matter, though match factories, soap, coal briquette, and been tentatively accepted by England it is strong pressure had to be exerted to induce rattan works, the extensions of the docks, more than doubtful whether the policy they to do it so. The lesson will no doubt be duly the large sugar refineries, and the rope and embodied would have been ultimately ac- by the United States and remembered, and if at any future time the cement works as standing monuments of cepted even shipping community or any other interest that development, whilst the spirit of local France, the promoters of the movement. should suggest the imposition of temporary enterprise is again evident in the recent The United States Government would not taxation to provide the cost of some much formation of a public company for the es- venture to abandon the single gold standard needed public improvement care will tablishment of cotton mills in the colony. without a mandate from the country, and in be taken to have the exact understand- If His Excellency had chosen to assume the an election fought on that issue the chances ing. whatever it may be, explicitly em- rôle of a prophet he might with some justi- would be in favour of the success of the gold bodied in the legislation giving effect to it, so fication have drawn a glowing picture of the party, as at the last election.
to France, the Journal des Debats says that the temporary charge for a specific future, for there appears good reason purpose may not be treated, as the Gap believe that the industrial development of that the adoption of free coinage would be Rock light dues were, as a permanent addi- the colony is about to proceed at a more rapid enough to secure the admission into a tion to the general revenue of the colony. rate than it has done hitherto.
lunatic asylum of the person who proposed The expediency of this course was sug- His Excellency's address bears a valedic-it or the Government that passed it. No gested in this column at the time the Gap tory character with it, as this is the last other ratio than 15 to 1 would suit France, Rock light dues were imposed, and ex- occasion on which he will have to present owing to the large stuck of silver held by perience has proved the soundness of the the estimates to the Legislative Council, but her and valued at that figure. But to suggestion. It was in this column also as he is not, we understand, likely to leave re-open the mint to silver at that ratio that the suggestion that the time for the the colony until March or April, it still would mean that France would have to remission of the dues had arrived was lacks five or six months to the time absorb the whole silver money of the world, first advanced, when the matter had ap- when it will be necessary to finally say and, as a contemporary suggests, so cautious parently been lost sight of by those more good bye, and in the meanwhile we have a people as the peasantry and small bour- immediately interested, and we may be no doubt the cordial feeling that exists geois who control the elections in France excused if we draw some personal satis- between Sir WILLIAM and the community would never support a Government which en- tered upon so wildly speculative a policy as faction from the result of the discussion will be further cemented. We have not thus initiated.
always been able to endorse his policy, but would be involved in sinking the gold he is a gentleman who commands personal reserve in buying depreciated silver in respect and regard even from those who unlimited quantity above its market value. may differ from him politically. His The WOLCOTT Commission has proved n policy bears many points of similarity to failure; it may be looked upon as the last that of the late Sir JOHN POPE HENNESSY, flicker of bimetallism. but it has been pursued by very different
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CHINA AND THE GOLD STANDARD.
The budget has been balanced by pro- spective increases of revenue, not by the curtailment of expenditure on public works. The opium monopoly has been let at a largely increased rental, a satisfactory feature, though from many points of view it would be more satisfactory if methods. the Government could see its way to the abolition of the farming system and the collection of the revenue from opium by some less objectionable means. An increase in the amount derived from assessed taxes is anticipated, owing to the increased value of property and the extension of building. The Government intends, too, to adopt what His Excellency terms a bold policy" in regard to the supply of subsidiary coins, by which we presume he means that the supply is to be kept up to a point sufficient to meet the demand, a policy which the public has long desired to see adopted. His Excellency says the Government is much indebted to the Chief Manager of the Hongkong and Shanghai Bank for his assistance and advice in connection with this subject, and if that means that Mr. JACKSON has induced the Government to throw over the timorous policy of the past the public will unite with the Government in expressing thanks to that gentleman. Another source from which a substantial revenue is anticipated is land sales, and we think there can be little doubt that the anticipations on that head will be more than realised,
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As to
China and Mexico are now the only important countries remaining that depend upon the silver standard, and in China silver is not the real standard, that position being held rather by copper cash. Her In an article upon our suggestion that foreign trade, however, is in reality con- Hongkong should adopt the gold standard ducted on a gold basis, the rate of exchange the Japan Mail admits that it is very im- being taken account of in every transaction for the sale or purchase of goods between "probable that any community of mer- "chants should be able to work successfully Chinese and foreigners at the treaty ports "with a silver currency if the demonetisa- and in Hongkong. It is only the Chinese "tion of the white metal by so many nations Government that cannot take account of is to remain permanent.' Our conten- exchange, and it has to collect its duties But China has porary goes on, however, to question the in depreciated silver. probability of permanence. England, says contracted large gold obligations and the writer, is the chief if not the sole is trying to contract more, and if silver obstacle to an international agreement for continues to decline the strain on her the rehabilitation of silver. Now if Eng finances must soon reach breaking point. "land had to consider her interests as the And that there will be a further decline The rate of "world's creditor only, she would assuredly there can be little doubt. "hold firmly to her gold conservatism. exchange is at present sustained by a tem- "But she has to consider something else.porary scarcity of money in the Far East, "She has to consider the interests of a "section of her subjects numbering no less than 300 millions, What is to be done 44 about India ? The correct answer to that question is supplied by the Tinies, which, according to Reuter's tele- gram, says that the only chance of secur- His Excellency gives a very favourable ing a stable rate of exchange between review of the commercial progress of the England and India is to establish a colony during the last five years, but there common standard,, which, under the cir- is one point in his remarks that calls for cumstances, can only be the gold sovereign. some elucidation. We are told that the | This establishment of a common standard value of the transit trade has increased throughout the empire, and practically
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caused by the withdrawal of the Japanese yen and other fortuitous circumstances, but the influences-now operative will not last many months, and then silver will resume its movement on the downward grade. One of the reasons of Japan's adopting a gold standard was that she desired free access to the money markets of the West. The same reason ought to operate, and more strongly, with Chiun, for if she does not take steps to regulate her currency she will soon find rocks ahead.
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