374
THE HONGKONG WEEKLY PRESS AND
CURRENCY CONVERSION IN THE would be required for the coinage of the new
STRAITS.
4
were to represent anything
than
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November, 189 1897.
it would be an essential preliminary to a change of standard, in order to prevent all the chopped dollars of Canton and the sur rounding country being dumped in the colony. It is illegal under the existing law to deface the British dollar, but chopped Mexicans are still current and if of due weight are legal tender.
INTRIGUE AGAINST SIR ROBERT ᎻᎪᎡᎢ .
token dollars, say $2,000,000, leaving a ba lance,if this estimate is correct, of$10,000,000 (16th November.)
to be ultimately sold as bullion. Supposing The forecast published by the Straits Times the price realised was only 1s. 6d., the of the report of the Straits Currency Com-loss of 6d. on each dollar would amount to mittee leaves one important point untouched, £250,000, or $2,500,000. On the other namely, how the conversion is to be effected. hand the Government would be saved fur- It is proposed that a gold standard shall be ther loss in regard to its sterling payments adopted, based on the English sovereign, the and exchange compensation. If the dollar sovereign to be divided into ten parts, each fell to 1s. Bu, this loss in the present cur- to be called a Straits dollar, and that tokens shall be issued for these dollars; that rency would be increased by $506,666, the
saving of which would represeut more than A ccording to a Peking despatch published is to say, that the coins shall not be 20 per cent. per annum on the cost of con- by a Shanghai paper, Russia and France are intrinsically worth the tenth part of a sovereign. It is not stated, however, whe-version. At that rate the loan which it is actively conspiring to procure the dismissal ther these token coins are to be of unlimited proposed to contract could be very speedily of Sir ROBERT HART from his post of paid off. The figures given by the Com- Inspector-General of the Imperial Maritime legal tender, like the rupee in India, or whether gold is to be introduced as the mittee cannot, however, be accepted as con- Customs. If such an intrigue exists there is clusive. Instead of ten or twelve, million fortunately nof much likelihood of its suc- actual circulating medium and the token dollars to be merely subsidiary coinage and dollars only being presented for conversion ceeding, but there is nothing antecedently legal tender for a limited amount only. It it is possible that double or treble that improbable in the fact of its being in number might be forthcoming. On the progress. Russia and France are both is probable that the scheme contemplates face of it the estimate looks dangerously jealous of the extent to which England is the ultimate adoption of the sovereign ав the
small, and experience shows that such represented in the Customs Service and current coin of the colony
estimates are generally exceeded. A case would be glad to reduce her importance in but that the transition is to be made in point is that of the redemption of the that respect, though as a matter of fact the by similar means to those adopted in India. This, however, can only be regarded Corolus dollar, mentioned by Mr. OrrOMAR number of posts held by British subjects is by no means disproportionate to Great Britain's as a makeshift arrangement. The Indian HAUPT the other day. The Government
was prepared for the return of only about 60 share in the foreign trade of China. The currency experiment has not yet attained complete success and is regarded by experts million dollars, while in reality no less than attack now being inade, however, is alleged as attended with grave danger. It would 109,344,000 were presented. The same thing to be directed against Sir ROBERT HART The personally, with a general reorganisation be desirable, therefore, if it were possible, at might be repeated in the Straits.
a subsidiary object. once to introduce gold in fact as well as in quicker the conversion is effected, however, of the Service as theory, the metal itself and not mere tokens the less likelihood is there of coin in circula- Sir ROBERT has filled his difficult and for gold. Presumably, however, the scheme on outsile the colony being imported. In responsible post with absolute impartia- contemplates the gradual attraction of gold this respect Japan made a mistake, the lity and has never sought to secure any ex- by maintaining an artificial scarcity of the notice given of the conversion and the clusive advantage for his own country or to token coins; and as a new token is to be time allowed for the presentation of silver discriminate against any other country. introduced-instead of, as in India, having a
yen being too long. As the silver yen This, however, does not satisfy our rivals; Dot token coins and did not they want, not impartiality, but the as- large accumulation of previously existing
morecendancy of anti-English influences in all coins to work off-the transition stage purport
રી a certain weight of silver of that relates to China's foreign relations. may prove to be of shorter duration than it has been in India. The scheme when certain fineness Japan was under no moraj Germany, of course, is as much interested as published will be keenly scrutinised in obligation to redeem in gold such of the Great Britain in the opening up of China Hongkong, as it will probably be taken as coins as were circulating outside her own and the development of trade, but there are a guide for any currency conversion scheme boundaries. Unfortunately for herself she other Powers that would prefer to see the that may hereafter be adopted for this gave notice of such length as allowed of the country remain closed rather than that ad- colony.
coins being collected over the whole area in ditional facilities for commercial intercourse which they were in circulation. It is not should be provided if it seemed probable that intended to make the same mistake in the British merchants would avail themselves We were mistaken yesterday in supposing Straits, and probably only a few days' notice of such facilities in larger measure than their which will effectually own subjects. The opening of the_West that the Straits Currency Committee night will be given,
River, for instance, is regarded by France recommend that the proposed conversion prevent importation. In Hongkong we should be effected by maintaining an arti-
are not so favourably circumstanced, for as a concession made specially to England, ficial scarcity of the token dollars and thus notice of even only a few days' duration though the river has been thrown open encouraging an influx of gold. The Com- would admit of importation from Canton, equally to the trade of any and every nation mittee record their opinion that giving a
and no one could estimate the number of that chooses to take advantage of it; and fictitious value to the silver currency by the silver dollars of sorts that might at short had a Frenchman been at the head of contraction thereof is a course which cer- notice be raked together in that city if the the Customs Service his influence would thrown in all probability have been tainly could not be maintained with safety business offered a profit of a cent or advantage, and they recommend therefore two to the dollar. This uncertainty would into the scale against the granting of the the conversion of the present currency to a
have to be taken into consideration in concession. French or Russian influence in gold basis. The scheme by which it is sug-fixing the rate of conversion. Ten dollars the administration of China must be re- gested this should be effected is that within to the sovereign would of course be the most garded as reactionary except as regards a limited time all dollars legally current in convenient ratio to adopt for purposes of the furtherance of their own particular the colony should be exchanged for Govern- account keeping, but the colony could not interests. ment currency notes and that a temporary afford to pay for that convenience if silver sterling loan should be contracted in suffered a material fall in the meantime, and order to secure a reserve of bullion to we might have to be satisfied with fifteen bold against the latter; the Government dollars to the sovereign. So far as Hong being relieved for a few months of the kong is concerned currency conversion is obligation to redeem its notes in coin in order probably still in the distant future, for to allow time for the floating of the loan. The the balance of opinion is as yet adverse Even those who are scheme would in the first instance involve to such a measure. some loss, which it is rightly contended most strongly opposed to it, however, cannot should fall on the Government as represent refuse to recognise it as a possible contin- ing the whole community, but it is also gency, and in view of such possibility, and shown that this loss would be compensated in order to be the better prepared to meet for by subsequent advantages. Indeed, it it should it arise, it would be only common would seem that the Government might even prudence to prepare for it to the extent of make a profit on the transaction, on paper, legislating against the circulation of chopped that is, in balancing the budget. It is esti- or defaced coin. This would be a desirable reform in itself and has often been advo- cated before any idea was entertained of a possible change of standard, becomes still
(17th November.)
mated that there are not more than from ten to twelve million dollars in circulation at the present time throughout the colony and Federated States. A portion of this silver
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more
desirable now,
or
It
as
It was made one of the conditions of the recent Anglo-German loan to China that during the currency of the loan no change should be made in the administration of the Customs. The exact terms of the condition have never been published, but necessarily they must refer to the system and organisa- tion rather than to the personel, for in the latter changes must continually occur, and Sir ROBERT HART himself cannot in the course of nature hold his present position for many more years. So long as he chooses to retain it, however, there is no fear of his being dismissed. The Chinese know his value too well, and, more than that, they would be loth to anticipate the difficulties that will be imposed upon them in connec- tion with the appointment of his succes- sor, difficulties arising not only as re- gards the selection of a suitable man
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