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THE HONGKONG WEEKLY PRESS AND
THE GOLD STANDAKD FOR CHINA, the value of the last named metal would
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(Daily Press, 20th July.) Mr. D, H. MACKINTOSH, the agent of the Hongkong and Shunghai Bank at Tientein, pronounced in favour of the adoption hey gold standard by China. The occasion the reading of a paper on currency form in China by Mr. TENNY, who stated his object to be to describe the present monetary system of China and show how it differs from that of Western countries, and then consider some of the ractical questions that have arisen lately in connection with the irregularities of the copper cash. Mr. Try expressed the opinion that there is only one way to reform the currency of China; the Government must abandon entirely the second of the two monetary units, and base the finances consistently on Ailver basis; there must be no copper coins in circulation except as subsidiary oinage in the foreign sense, as tokens and pledges of silver, Mr. MACKINTOSH's re- marki were made in introducing the reader of the paper, and unfortunately they are not reported in full in the local journal, nor does it appear that Mr. TENNY referred in any way to the point raised. We are told, however, that Mr. MACKINTOSH
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cause grave embarrassment to the Chinese Government. The trade of the country is increasing, it is true, and the Customs re- venne increases pari passu, and in that way the revenue might keep up to the amount required for the service of the loan even in face of a decline in the value of silver. On the other hand it is possible that the present period of trade expansion may be followed by a few lean years, or a fall in silver may take place suddenly, and China might then find herself in the position of having to elect between partial failure to fulfil her oblign- tious and such an increase of taxation as would cause popular discontent and possibly civil disturbance and foreign in- tervention. There is only one safe financial policy for a nation having a foreign debt, and that is to have the national revenue and the national liabilities on the basis of a common standard. We in Hongkong know what loss has accrued to the colony's finances by contracting gold debts while the revenue is collected in silver, and the same experience repeated on a larger scale in China might have disastrous consequences, both for the borrowers and the fenders. It is true that silver has been steady for some time past, that there is no immediate prospect of any heavy fall. and there may even be a rise, but all that is a matter of conjecture, whereas certainty of values is essential in national finance. It is to be presumed, therefore, that China will not neglect the opportunity which tariff evision will afford her of ac opting the gold, standard.
remarks at Tientsin appear to possess some signi- ficance in this connection. He was of course speaking unofficially the gathering he addressed being held under, the auspices of the Young Men's Christian Association, but we cannot disregard the fact that it was the agent of the Hongkong and Shanghai Bank who spoke.
pressed in a few forceful words his con- victions concerning the state of China's finances and his solution of the problem, which was that China should follow other nations in the adoption of the gold standard. After the Japan-Chinese war Japan adopted the gold standard without ↑ânancial disturbance or loss of credit, and much of Japan's rapid advance was due "to this fact." The latter statement may perhaps be demurred to. The gold standard not yet been in forcein Japan long enough 10 axart much appreciable influence upon the country's advance, which has proceeded at no greater rate than before; but the effect will make itself felt in the future by pro- moting the influx of foreign capital, a move- ment which is now setting in and appears likely attain large dimensions. When the project of currency reform was under dis- cussion in Japan there were many foreign eritice whe considered the step fraught with danger, but the apprehensions then enter
ained have not been verified and at the present time there are few who will venture so question the wisdom of Japan's decision,
It is only alquestion of time when gold will be the standard of the whole world, and the crucial point for the consideration of states that have up to the present ad hered to the silver standard is whether in their particular case the time is ripe for the change. India is about to adopt the gold standard and there is but little doubt that the Straits Settlements and Protected Malay res will follow the same course, and thus ith Japan to the east and the Straits Settle ents to the west Hongkong will have gold using neighbours on each side. The Chamber of Commerce has expressed the opinion that this colony must adhere to silver so long as that metal is the measure of value in Chiua; but it is not unlikely that in China itself the change to gold will" not be long delayed. Revision of the tariff is, to take place, shortly and the Chinese Government would neglect a valuable opportunity if it failed to make the duties under the new tariff payable in gold. The Customs revenue is the security for the Coun
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foreign loans and is fully pledged,
Mr. MACKINTOSH'S
LORD CHARLES BERESFORD
AND THE UPEN DOOR,
(Daily Press, 19th July.) The advocates of the so-called ' open door" policy seem to experience some difficulty in defining what they mean thereby, also in recognising when a door is open and when it is shut. Their real idea, we take it, is that Great Britain should hold the key of the door, with a right to lock it when she sees fit. This seems to be indicated by the opposition offered to the proposed construc- tion by Russia of a railway to Peking. When that Power raised objections to the mortgage of the Shanhaik wan-Newchwang line to a British syndicate there was a great outery about the " open door," and Lord CHARLES BERESFORD went so far as to tell us, when Russia carried her point, that the door had been absolutely shut, a statement which he repeated in the House of Con- mons the other day. At the same time his Lordship objects to Russia making a rail- way to Peking. Referring to the Anglo- Russian agreement he said:"By this agreement Russia had the right to construct a railway to the south-west of Peking.
If the railway was made * he would like to ask what would become of the English capital which had been “invested and the other property belonging "to the Peking Syndicate? Moreover, what would become of the country which was " not designated as the Yangtsze region, which had no boun lary, and about which no agreement had been made with Russia? He hoped that the Governinent would put their foot down in connection with
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the lekin of several provinces having had to
own in as additional security in the" case of the last loan. The loans are in gold, while the revenue is at present in silver, amba decline of a few pence per ounce in
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· [July 22, 1899.
Could there be any
this question?" clearer declaration that, according to the policy of Lord CHARLES BERESFORD, there is to be no " open door" for Russin, so far as the construction of railways is concerned ? His Lordship cannot have his cake and eat it, a truism of which he seems to have recognised the validity when
writing his recently published book, for in the chapter on railways he says:-
"In order
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to secure the open door' policy it may be that we shall have to concede to other "countries preferential rights, or spheres "of interest, as far as railway enterprise is "concerned." He goes on, however, to say:-"In my humble opinion, it would be "better for British trade and commerce if
we keep clear of' spheres of influence in every shape and form and adhere firmly "to the 'open door and equal opportunity "policy." According to his speech in the House of Commons, however, his Lordship would not allow Russia to avail of the "open
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door and equal opportunity" policy, but would have the British Government slam the door in her face. Occasion may pos sibly arise sometime for slamming the door in Russia's face, but the inconsistency of ad- vocating in one breath an open door policy and a closed door policy is apparent on the face of it.
The question of railway concessions is not covered by the treaty of Tientsin, and, setting that question aside, it is true, as stated by Mr. BRODRICK, that up to this moment the treaty of Tientsin has been ob served and no door has been shut; our trade goes wherever it has gone before, and even to places where it formerly did not go. When it is said the treaty of Tientsin has been observed exception must of course be unade regarding the frequent infractions of its provisions by the Chinese provincial au thorities in respect of the taxation to be imposed on foreign goods; but there has been no attempt by any foreign Power to compel China to act in violation of the ins trument.
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The policy of Great Britain, as it seems to us, should be to see that the treaty is maintained in full vigour, to secure for her own nationals such mining or railway con cessions as may be applied for with the bona fide intention of working them, and not to get into a fever of excitement about concessions granted to other Powers which do not conflict with our own inter- Lord CHARLES BERESFORD ests.
silys "What he complained of was that Her Majesty's Government had been shout- "ing and bellowing loudly for the open door,' but their action all the time "had been making for the sphere of "influence policy." As regards railway corcessions it appears certain that there must be spheres of influence; as regards trade in im orts and exports the conditions are equal for all comers and are likely to continue 80. The efforts of the Powers should be directed rather to making China open up her country unreservedly than to
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shouting and bellowing "-to use Lord CHARLES BERESFORD'S rather inelegant expression-at each other and trying to put spokes in each other's wheels.
Referring to the reported seizure of the Florida the Manila Times of the 30th June says: We are asked by Mr. C. S. Rovinson to correct the report which we translated from the Comercio yesterday respecting the steam launch Florida, which he says is erroneous and misleading. The Florida, which belongs to Mr. Robinson, was, he says, on its way from Hongkong with its papars all in order, and nothing on board but coal and the crew. The launch will be out of quarantine to-morrow, when she will be moored outside Mr. Robinson's office for inspection.
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