416
THE STRAITS CURRENCY.
THE VIEWs of MR. HUTTENBACH, As soon as it was known that the Legislative Council had set its seal of approval upon the Report of the Currency Commission, a represen tative of the Straits Times paid a visit to Mr. Hattenbach in order to gather his views as to how far he thought the discussion and vote altered the position. Mr. Huttenbach expressed himself as delighted to have an opportunity to state his opinions and an appointment was made for the next day, as Mr. Hattenbach wished to read first the Report of th. Council Meeting so as to be acquainted with all the arguments, In reply to a kind of leading question as to what he thought of the debate generally, Mr. Hulten. bach said:"I think the debate shows mistaken notions about the motives of thosa who have gone to the trouble to criticise. I do not think there are individuals influenced by monetary gain or prickad by jealousy. I think there is nothing of the kind. Anyhow, this is entirely a question as to how well-known forces will operate nu ler giren circumstances Personally, I would like it to be known that in regard to those who have done me the honour to read my opinions and to refer to the same in Council, while I am always grateful for their pointing out shortcomings, I am con- vinced, even where we differ, of their sincerity of purpose and purity of motive. Were such not the case on my part, it would not be con- tributing towards stability of the standard or fixing of the standard but of lowering the
standard-of debate.
"Are these according to your view the only mistakes ?"
Never mind, that is not the point. The main question and the only question is, and remains, whether the Committee has been misled by insufficient evidence. That such is the case has also been forcibly shown at the meeting of Council Amero denial cannot dispose of that. A mere denial never disposes of any argument. And that point it is to be hoped may still be looked into by the Secretary of State. It is not too late yet. He is the head of the family, and after Friday's pro- ceedings in Council a stronger case then ever can be made out, especially if the question as a whole is looked at on large lines und divested <of details.
"What is your meaning ?
THE HONGKONG WEEKLY PRESS AND
"I will give it to you in the form of a parable. There were two men, of which one man had already got, and the o her had to get, a new horse. The man who had already got a horse was lame and was therefore only allowed a poor kind of a horse, which could not be of much extra service to him. The man who was still looking out for the horse was not lame. He was strong and healthy. He could ride any horse. And just one particular horse was in his reach, which would have been of the greatest advantage not only to him, but to others con- nected with him. But the doctors gave their opinion that this man should also get an in- different horse. Though heal hy he was also considered lame, ie analogous ' to the other man. And the way he was to be treated, because by mistake he was considered to be: lame! was by some of his Friends looked upon as calculated to cause him a great deal unnecessary pain. These friends had nothing to say against the doctors or against anybody. What they did maintain was that the conclusions arrived at were wrong, because the doctors had not geen the patient themselves. The doctors hd to go by hearsay and by hearsay of witnesses wo themselves had either not seen the patient at all, or not for a long time. And if one or two had seen him lately, they had not paid special or study to his condition. These attention friends wanted the head of the family to look into whether the doctors have been misled or not. In the first place, whether the diagnosis as to the two cases being analogous not for the above reasons wrong, and should such be the case whether the infliction of pain and harm, which in any case could be avoided, should not be proceeded with.”
:1
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“By just the one particular borse' I sup- pose you mean a Gold Currency ?"
"Exactly. There can be no greater fixity with gold than to have gold itself. Besides gold would be easier to get because it would not
(June 20, 1903.
entail the labour to work up a substitute to | demonetisation. It is a position, such as exia18 artificially represent the value of goid. And it nowhere else.". would be more sure because there could then be
"I will ty to. The Report sys: The Dollar has fallen from 4s. 2d. to about 1s.. 7d.' The dollar at the outset of the fall was 4s 6d. The 4s. 2d. has been taken to be a misprint. It is due to the evidence. This is evidence on the point:
1
"Excuse me. Mr. Huttenbach, but this. no risk of the artifical value not being main-explanation will hardly appeal to the man in tained. Sis will no doubt in time get ove: the street. Could you not show in a simple her difficulties regarding the tck n. We could common-garden way why you think the evidence entirely avoid them. And moreover it is just as to local conditions is not complete or is what the Straits want. It will give the Straits wrong? a new lease of life. If the Straits have gold, capital will be more attracted than by a token currency however well manipulated. The Straitscan thus become the principal money market of the East of the future, and thus retain the trade, and even get a firmer hold of it than now. The forces of the money market would be a substitut› for, and be stronger than, the forces of transit trade which latter forces with the influences at work must, it is believed, get less in time, and perhaps later on vanish altogether. A gold standard might mean the saving of Siug pore.
832. Retaining and increasing the trade hare
î8 $1-9J-92 cents would mean fostering British trade. It would
per pound sterling. make the strongest possible position u der 833. (Chairman.) What was the Mexican existing circumstances for British trade and dollar in 1870 ?—The same as the American industry to pirot around.”
dollar;
I mean the gold value. (Mr. Adan- son.) Well, 1 think, about 1870, it would be worth about 48. 3d, as far as I remember, 834. (Chairman.) Your argument, apparently, is that the dollar having been about 48. 2d. or 4s. 3d, and having fallen to Is. 7d., you think that the fair average va ne to all concerned, as accurately as you can get it, would be 28., or something more? Something better, yes."
44
But is not gold not suitable for Asiatic countries ?"
"The suggestion that it ig not may apply to all other Asiatic countries but not to the Straits. These other countries are considered too poor. These who know local circumstances will bear out that this does not hold good here. The Chamber of Commerce, who ought to bo the best judge, recommended a Gold Currency, and I suppose would still prefer it. The other objectious likewise failin the Straits. The transactions are not so small here as to make silver indispensable. Besides, with the subsidiary coinage as well maintained in the future as in the past, we can continue our smallest coin, the quarter cent, under a Gold Currency just as well. And the Asiatic here is enlightened and adaptive, and will gladly take gold just as the Asiatic takes gold when he is in Australis, America, the West Indies, and other like countries. Other countries might object to the Strails joining in the struggle for gold,' but that is now an obsolete impression. This is what the report says as rega ds a gold standard :—
**'830. (Chairman.) What was the old value of the dollar P-Mr. J. Heim. The old valus of the dollar was 43. 2d. (Mr. Adamson.) When I first went out it was 5s. (Chitman.) When would that be; about the time of the Indian Mutiny? 831. (Mr. Adamson.) 1854? -48. is the par value of the American No; the American dollar
dollar,
"Of course, the matter i ́self is of no impor- tance and does not affect the scheme. It is only meant, as desired by you to give an illustration of evidence on local conditions.
"Bat do you think the Secretary of State would alter instructions once given ?"
I think just from the way you put it a great deal can be explained. I think there is a mis- understanding! I do not think that any in- structions were issued. There is I think only a notification that there are no objections.' No Secretary of State would ever force a change in currency on such a new method (and it is entirely a new method, although it does not lock so at the first glance) on a Colony by 'instructi ns.' Mr. Chamberlain last of all.
10
Why do you think so especially as regards On the other hand it can hardly be expected Mr. Chamberlain ?"-" Because, he is a Secre- that the Straits Settlements, if it should appear tary of state endowed with the genius of states- advantageous to adopt the gold standard. shouldmanship in the fullest sense of the word. That sacrifice their own interests out of consideration for other countries.'
"And this no doubt holds cqually good as regards a gold currency, esproially as the actual quantity of gold required would be so insigni- ficant while the results might be so great.
There is, I suppose, no doubt that the Committee went by the evidence. In fact they were bould to do so,
But how
can you substantiate your qualificatio of the evidence, and who is to be the judge?
“Well, I would be quite satisfied to let Sir David Barbour himself be the judge. Had I to select a proposition, I would lot it be thus: This is & C:8) where practically all débis due to the merchant by the dealer (and they represent the whole' import trade) are to be paid from external indebtedness due to the dealer, Iu
case
is to say, he possesses that wisdom which traces events to causes, unravels their complica- tions, and fore ees their consequences, fading at the sime time the best mode of avoidance or interference. A rare gift which great minds exercise for the benefit of their country and only little ones for their 'personal advantage. And not only is Mr Chamberlain pose 'ssed of such an intellect, but that rare intellect has also the rare gift of being able to weld his ideas into noble thoughts and to express them in noble language, And as if fortune had meany for once to be altoge her in favour of Englands and especially her Colonies, this great man it g'ill more. He is a business man,
“Why do you lay such stress on his being a business-man ?"
"This is above all others the century of trade and industry. Such a busin ss man in such a posi ion, who has made the advance- of sudden demonetisation, allment of the Colonies a special part of his this external indebtedness is, owing to its being programme, will mean, wisdom and justice subject to a different standard, exposed to great applied to the remotest part of the Empire. depreciation (thereby affecting adversely the And Mr. Chamberlain being a business man import trade) There is no banking machinery will make it sure that the question is well to enable dealers to guard against this, the understood and will recognise its importance, places being too small and in many cases cut which is mainly one of busi oss, being under- off from communication. And the dealers, sto d, aud "instructions or no instructions, even where there is the machinery to guard of it being settled to the interests of the against, and though cute enough to learn in Colony. For which there is still plenty of time. Mr. Chamberlain could not know that time to guard against, do not know enough to do so at the moment of demonetisation, as the the evidence is considered not complete here. effects are as yet unknown to them. It is The Committee themselves could not know it.. asserted that this state of affairs is not disclosed The point has never been raised." by the evidence.
"With men of the stamp of Sir David Barbour, though nobody is infallible, points of controversy can be narrowed down to the
smallest. And it could be further condensed
into a statement to the effect that: External indebtedness has to go against all internal indebtedness. This theory is ruled by a different standard, the depreciation of which it is impossible to provide against at the time of
No, it had not been raised but- *"It has been raised with the local Govern- ment; only unfortunately so far no osse has been made out to their satisfaction. Perhaps a case to their sati faction can still be made out. Perhaps whit happened yesterday will make them reflect. Hardly had the Council approved of the measure when the great gamble, was started. We have already to-day « special Straits exchange and the troubles connected
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