78
HONGKONG LUBSIDIARY COINAGE.
THE HONGKON) WEEKLY PRESS AND
this 16. We approve of
course, (which however will be a failure unless prohibition is enforced), provided that, when the coinage Following are the reports submitted to reaches par value, redemption should be stopped
COMMISSION OF ENQUIET.
Government :-
44
**
MAJORITY BEPORT.
We the undersigned members of the Com. mittee have the honour to report as follows:-
1. Subsidiary coinage is solely for the purpose of the internal retail trade and other small transactions within the Colony,
2. It is true that in past years the Hongkong subsidiary coinage played a considerable part in the trade with Canton but judging from the trouble that has arisen in the last two years it would appear to have been an economic mistake to have directed it from its true purpose.
3 Just what quantity may from time to time be required is a matter of experience but the chief test is the value of the coin in the open
market.
4. It may however be taken that $5 per head is sufficient in a community whose standard coin is $1 and where the legal limit of tender is $2.
5 Taking roughly the population of the Colony at 400,000 it would therefore, appear that a total of $2,000,000 at any one time is sufficient and assuming that the life of a coin is 20 years (which owing to past circumstances cannot yet be verified) a supply of $10.00 your would be ample under, present circum- stances.
to
6. The issue outstanding during the last 40 years is $40,0 0,000 of which about $30,000,000 were issued in the tén years prior 1905 and the coinage has been during the past two years at a discount varying from 9 per cent, to 4 per cent,
7. From these facts it may be justly inferred that there is in existence under present circum- stances a large over-issue of Hongkong sub- sidiary coinage.
8. For reasons unnecessary to state in detail it is obvious that it is desirable to rebabilitate the surrency of the Colony and it only remains to consider the best practicable means for this
purpose.
9. There is no necessity to demonetise the existing currency as any scheme for the substitution of a new coinage must necessarily prove more expensive than the rehabilitation of the present coinage unless it is proposed to repudiate a proportion of the latter, a course which is most objectionable as tending to lower the credit and honour of the Colony.
10. One of the circumstances of the present depressed condition of the subsidiary coin is notoriously the excessive circulation in the Colony of small coins struck at the Canton Mint.
11. These do not really constitute a rab. sidiary coinage as there is no legal standard in existence to which they are subsidiary, but are simply an imitation of the currency of the Colony manufactured by a local Government utterly ignorant of the first principles of political economy in regard to currency. The par" value of these coins is therefore simply and solely their value as bullion.
sod a reserve of coin be kept in the Colony 80 as to prevent a shortage in the supply and avoid the possibility of the coinage being at a premium. As an additional precaution the export of Hongkong coin might be prohibited. Appliestion for a in from such reserve should be strictly kept down to a maximum for each application.
17. It is recommended that whatever course of action be adopted by Government, due notice be given to all parties concerned except perhaps in the case of the import of alien coins. If any hardship arose in particular instances due con. sideration would be given to sucb.
[February 3, 1908.
The undersigned farther desire to recommend to the Government that the second proposal should be taken in band first, and they respect- fully suggest that a capable official of the Colony be seconded without delay to proosed to Peking to furnish H.B.M.'s Minister with detailed information during the negotiations.
In the event of the negotiations being with- out result the undersigned recommend that the Committee be oslled together again six months hance to farther deliberate.
A copy of the Chairman's Report, which has been supplied to us, is attached bearing our annotations.
D. R. LAW. A. G. Wood, J. R. M. SMITH.
Hongkong, 5th November, 1907.
18. It does not appear that there would be any advantage to the Colony to attempt to come to agreements on this question with the THE INTERNATIONAL SETTLEMENT Authorities either at Canton or Peking.
19. Until China has properly inilisted currency in socordance with economic principles, no proper agreement is even possible and it is always probable that if one were entered luto it would be evaded or abrogated according sa profit therefrom might soorue to the authorities concerned.
is purely an internal affair of the Colony and 20. The regulating of its subsidiary coinage it would appear to be, at least, andignified for this Government to rely on assistance from a if Foreign Power to ensure its rehabilitation even such assistance were practicable and forthcoming. 21. Whaterer the Government can do, however, to urge he inception of a proper currency in Chins should be done.
A. M. TROиson, Chairman. ROBT. SHIWAN,
A J. RAYMOND. War A. YUK.
28th October, 1907.
64
MINORITI REPORT.
We, the anda-signel Man.bers of
the Committee appointed by His Excellency the depreciation of the Subsidiary Coinage of the Governor to enquire into the causes of the
Colony and to advise as to what means can be taken, with das regard to the interests of trade, to reh bilitate such coinage, while admitting that the amount of British Subsidiary Coia, as estimated by the Chairman of the Committee to exist in Hongkong, is probably suficient for the requirements of the Colony, cannot admit that it is desirable, in the first instance, to take any action that might result in the further deprecia tion of the Subsidiary Coinage of the Two Kwang provinces as these coins form the chief, if not the only medium of payment by the consumers of goods bought and exported from
Hongkong for use in these prorino-8
use of Canton coins in
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The trade of Hongkong is so closely connect- d with that of the Two Kwang provinces that sidiary Loinage by res rioting or proibiting any attempt to rehabilitate the olony's Sub- under penalties the Hongkong, as provided for in the proposed dinauce submitted by the Chairman, would in the opinion of the undersigned bring about a farther depreciation of thes coins and might lead to fiosocial disabilities, if not to mesaares of
adversely affecting the trade of the Colony,
retaliation by tb Canton Authorities,
that the Government of Hongkong should
It is t'erefore advised by the andersigned
12. From a rolitical point of view it would be desirable to exclude this alien coinage which is to a certain extent responsible for the depression in the market value of the Colony's money.
13. Also, from the retail point of view at all events there can be no objection to its exclusion on commercial grounds provided that a suficientment through the usual officist chancels th supply of Hongkong coinage is maint ined, and there is no evidence to show that any loss or damage would occur to international trade on account of such exclusion.
14. Taking this last point first it is advised that an Ordinance be put into force g'ving the Governor-in-Council the powers already con- ferred on the Governor-in-Council of the Straits Battlements, with a view to the prohibition of the import and circulation of all alien subsidiary coinage whatever (imitation or other), with the exception of the Chinese Cash, (which how- ever might possibly be considered a standard, and not a subsidiary coin).
15. It is understood that at present Gover. ment is now withdrawing from circulation all subsidiary coin received as revenue and that the Secretary of State has been recommended to permit the redemption at market value of a sum not to exceed $1,000,000 yearly
1. Impress ou the Imperial Chinese Govern-
urgent necessity of China reforming ber currency in terms of the Mackay treaty,
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2. Enter into negotiations with the Imp rial Chinese Government through H.B.M's Mia¦ ister at Peking with a view to arriving at so agreement whereby the Chinese Imperial Government undertakes: ---
OF KULANGSU, AMOY.
Minutes of the Annual Meeting of the Rafos payers, held at the Board Room, Kulangan, on the 21st January 1908.
Present:-Messrs. H. Batbarst, C. A. V. Bowra, C. J. Farrow, A. J. M. Fauque, J. 8. Fenwick, H. Gottwaldt J. G. Gota, J. T. Hashi- Butler, 8. Okayams. Dr. J. A. Otte, H. F. moto, B. Hempel, M. H. Howard, P. E. O'Brien.
Rankin, A. Sagawi, Rəv. G. M. Wales, N, H. Wallace, E. Wylly. W. Wilson, 8. P. Yin, M. Yokyams and the Secretary.
1. Dr. C. Mors, Consul for Germany and Senior Consul, was in the Chair,
2 The Secretary read the notion convening the meeting
3 Mr. W H. Wallaos, Chairman of the 1907 Council, addressed the meeting a fol. low:-Gentlemen, With your permission I
Ia
would like to make a few remarks before we proceed to pass the sooounts. In the first place I wish to express one regret at the resignation of our Chairman, Mr. F. B Mar- in the interests of the community. Turning to shall, who was always a willing and able worker
anitary matters I would call your marnest attenting to the Health Officer's remarks in our Annn Report for 1917 concerning house- refuse, and also to the necessity of paying holders and the proper disposal of kitaben
attention to kitoban draiunga gener:lly. his report for 196 the Halth Offloor mid 'householders would be greatly assisting, from a sanitary point of view, if they were to forbid their servants allowing kitchen refuse to flow into the public drains. To obviate this, householders should provida their kitchens with refuse tubs into which all kitobea refase should be thrown. These tubs should be an pfied daily under private arrangements."
Coming to sooounta, I may meation that in our Budget for 1907 we anti. oipated a airplus of $3984 which saticipation I am pleased to say has been fally bɔrne out as we
$700 in arsens of our Estimates, in order to get have a surplus of 14390, although we paid out
rid of a 'white elephant" in the shape of rent on our market, thus compounding for a lump sum a liability which would have run on antil September 1909. This •urp'n', togather with $1237, the surplus of 19 16, will however be fully required to enable us to complete payment for our new Municips! Buildings which wa aslimate will cost as 26,00', and agniost which, as yu know, we took power to issue debentures to the value of $20,000. In conneo- tion with the " Now Building Account " I would point out that the item "Payments to Con- tractors o includes cost of sita vis: 83700, D-beatares issued stand at $'6,925 and the final call $3075 will be made on 31st March next. I cannot conclude my remarks without mying how greatly we all as Councillors appreciate the services of our Secretary, Mr. Mitobell, who has worked most strenuously both early and late for the good of the Council, and whose tact and courtesy have suabled him to deal successfully with every emergency that has arisen.
(a) to discontinue the outpat of subsidiary coin from the Canton Milt until such time as both Hongkong and Canton subsidiary colos reach par valas, (which | in opinion of the undersigned they will do very soon under these circumstances); 4. Mr. Hempel moved and Dr. Otte snoonded. and (b.) In consideration of the Hongkong ¦ that the Accounts for 1997 be passed. Carried
Government agreeing n ́t to issue more subsidiary coin except for the Clony's own use, to only mint new subsidiary coins sufficient to meet the public demand so as to maintain the face value of their coins at par.
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unanimously.
3. Mr. Hempel proposed. sroonded by Capt. Bathurst, that the Estimates for 1908 be passed Carried unanimously
6. the motion of Dr. Otte, moonded by Mr. Morley, the following gentlemen, who offered
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