THE NEW CHINESE CURRENCY PROPOSITION.
Chinese Public Opinion writes on this subject as follows:-
We note that the subject of a gold standard for China has again been brought forward by Government presumably on account of some proposition made by an influential official. In our last issue we published a paragraph anent the matter in which it was stated that, "the Ministers abroad should be wired to and ordered to negotiate with various nations to settle a proportionate valution between their own and Chinese currency. A basis is suggested that 15 pieces of Chinese half-taol coins should equal one pound sterling."
THE HONGKONG WEEKLY PRESS AND
on a gold standard basis its value, estimat- ing eight Taels to the pound sterling, would be three hundred and seventy-five million pounds. A gold reserve of at least half of this would be required, or say even hundred and fifty million pounds worth of gold sycee. Where is China to obtain this?
tion.
one
It will be seen that we have taken the currency necessities of the country at less than one English pound, the most stable standard in the world, per head of the popula- In Great Britain, опе of the richest countries in the world the metallic currency is about Twelve million pounds, in- cluding silver and copper coins. The note issue is approximately fifty million pounds, making a total currency of some sixty-two million pounds for a populatiqu of forty-two millions of inhabitants.
[January 18, 1909-
seen such disinclination to purchase at this season of the year,—a sure sign of hard times. Very many people are out of employment and are being supported by relatives, there is an increasing tendency to reduce the number of operatives in large establishments, while many smaller works have closed up entirely, and in the larger towns there are thousands of empty tenements to be seen, more people being crowded into the house that remain in order to reduce the outlay for rent. It is probable that as Japan has more recently entered the field of industrialism, she has less reserve and is more readily affected, while the persistent following of a policy which raises the price of commodities inevitably intensifies the distress. It may be hoped, however, that the general causes which have affected trade all over the world will gradually cease to operate. During We have reversed the position of cash the past year there has been a steady improve- currency and paper currency valnes for China ment in the conditions in America, and, though for the simple reason that China's Government not, so rapid or so extensive as was hoped, credit is not of the same calibre as it may be expected to continue. This has that of Great Britain. It is interest- already favourably affected one section to provide for this nor does it offer any securitying to note, however, that Great Britain's of Japanese trade in improving the that the half-tael coins of China, which by the security for her large paper issue consists of market for silk, and generally tends to way are not yet in existence, will be of high about eleven million pounds worth of Govern. arouse confidence. If the silver market were to grade silver approximating to the value suggestedmont securities, seven million and a half of other improve, or even to, steady, another branch of and leaving a margin for further possible depre- securities (commercial) and thirty million pounds Japanese commerce would receive a Allip. ciation of the white metal is a ris the yellow.
Moreover, the depression of the past year has no Of course if China kept a gold reserve, even
doubt removed a good deal of rotten business, in bullon only, sufficient to re løsm her silver
and this will tend to the strengthening of those tael currency to the extent of say, two-thirds,
concerns that have stood the strain. In many and gave sufficient guarantees that he would
quarters it is confidently anticipated that when redeem it, on demand, the proposition would be
business resumes after the holidays there will be accepted instanter.
a brighter outlook than has been evident throughout the last few months, and it may be hoped that experience will show the confidence to be justified.
Now this would be a very excellent arrange- ment for China but unfortunately in the present state of the world it is the custom of states as well as individuals, when asked to grant a favour, to look for quid pro quo.
+
The proposition as put forward does not seem
Silver at present is much depreciated in value but it is by no means certain that it has yet touched bottom." We remember hearing. some years ago, that in certain parts of the world excellent silver could be produced as low as one shilling and two pence per once. We have also heard of tailings containing much silver, from certain mines, being thrown aside as not worth the trouble of extracting the precious metal thereform. We have also heard that hundreds of rich mines in various parts of the world, more especially in Central America, are shut down as it was not worth while extracting the tons of silver in sight while there was such a surfeit of the metal in circulation. We were also informed that if all the silver mines in the world were worked at full pressure the metal would probably become more plentiful and cheaper than copper.
of bullion reserve.
Of course one can make the exception that the Chinese as a nation are not as wealthy individually, and do not need therefore, so large a quantity of currency in proportion with the British. This we are willing to concede, but we would point out that we have estimated
equivalent. so far at practically half of the British
To clinch our argument, however, we are pre- pared to still further reduce China's estimated requirements in gold for reserve purposes, retaining our figures in proportion, for metallic and paper currency. by dividing them by ten. This will leave to Chin the necessity of find- ing a gold reserve in hard metal of thirty seven and a half millions of pounds sterling.
Where can she raise this sum?
FOREIGN TRADE OF JAPAN
FOR 1908.
A HEAVY DECLINE.
BILLIARD CHAMPIONSHIP
IN HONGKONG.
The much talked of match between Mr. E. H. Hinds and Sergeant Pitt, the two foremost billiard players of the Colony, took place in St. George's Hall on 11th inst. before a very large. attendance. The players were introduced to the audience by Mr. A. Shelton Hooper, who took the opportunity of thanking the promoters for affording those present a pleasant evening. The game was 1000 up, and a start was made by Hinds, who gave the usual miss in baulk. Pitt
passed into his second with a 32 break 417 break saw Pitt past the first mile stone, and this was followed up by a score of 42, for which he was roundly applauded. Hinds succeeded with the good break of 63, scored off a lucky pot, and then he settled down to steady play, rapidly adding to his total with breaks ranging from 20 to 40 odd. His skilful touch, successful play for
We do not know whether all or any of this Empire for the year just closed, the Osaka proceeded slowly until well on in the hundred. In a brief review of the foreign trade of the followed with a fluky three, and then scoring information is true but we cannot fail to perceive | Mainichi says that, owing to the financial de. / The first century was recorded by Hinds, who that whenever any demand for silver springs uppression prevailing throughout the world, the a plentiful supply is invariably to hand very speedily.
How then can the proposition as mooted be put before foreign nations?
Silver, at present, rules low. China institutes a demand in order to mint sufficient currency of a uniform nature for her vast dominions. The supply being plentiful an increase of output will take place if this demand raises the price of the metal, either owing to the attitude of speculative holders or the demand for excessive quantity on quick delivery. The
new currency being digested and the demand having ceased, a sur- feit of silver will then be found in the market
foreign trade of all countries has shown a decrease more or less. The financial crisis and the Presidential election in the United States, the boycott of Japanese goods in South China, and the death of the Emperor and Empress Dowager of China have seriously affected the for the last ten days of the year is not foreign trade of Japan. The value of the trade yet known, but assuming it to be 80 per cent. of the figures for the preceding ten days, will value of exports this year amount to Y362,464,831 and that of imports Y432,730,180, showing excess of Y70,265,349 in imports over exports. Com.
the total
to
position, and accuracy of aim, soon drew him ahead of his opponent who, while playing more difficult strokes, had not the art of keeping the balls together or bringing them where they were wanted with the same skill as Hinds. Pitt also had the appearance of being somewhat nervous, for on several occasions he failed on compara- had increased his total by breaks of 40, 41 and 42, and the score then stood:
and a further slump. will be the necessary pared with last year, the exports showed a tively easy strokes. Before the interval Hinds
corollary.
The Foreign nations having agreed to accept China's half-tael coins at a valuation of fifteen to the pound will soon be flooded with such currency and will have no means of obtain- ing repayment in their own sterling basis for the coins. Will any sensible Foreign Power take such a risk fa
No!
The proposition as put forward is absurd! Now take the question of the introduction of a gold standard into China, on a rational basis. Suppose we estimate the currency Leeds of the Empire at Taels five per head of
the population.
This will give us the necessity of purchasing or. obtaining by degrees from current revenues Provincial and Imperial, a sum of two billions of Taels, in silver, for coinage purposes. In addition to this, for the purpose of facilitating transport, and merely considered as a medium for this purpose a country so extensive as this may be deemed to require half this amount in paper currency. This will give us the very moderate capital currency of three billions
Taels. In order to put this currency
decrease of Y69,948,042 and the imports of Y61,737,166, or an aggregate decrease in the total trade of Y131,685,208.
7-
the subject of the world-wide trade depression The Japan Chronicle in a leading article on
says incidentally:
The effect of the world depression in trade has been very serious in the case of Japan. Coming at a critical period, when the country suffered by the war, its effects have been crippling. was in the first stage of recouping the losses Compared with 1907, foreign trade has fallen off by about 130 million yen, reducing over-sea trade to about the level of 1905, the year after the war. This has naturally had its effect on the high taxation necessary to pay for the late internal trade, which is seriously burdened by
of commodities thus produced. It seems to be war and is further hampered by the high price the universal opinion that not for years past has such a depression been evident in the internal trade of the country as during the last few months. Some of the retail dealers assert that in the whole course of their experience they have not
Hinds Pitt
530 299
the interval registering a break of 40 shortly Hinds continued the same consistent play after
after the start, and following this up with a 62, Pitt, however, was not showing such good form, his score being increased by small contributions. When the totals stood Hinds 789, Pitt, 457, the fell off. latter player began to show up better, while Hinds Pitt played a steady game and began to gain on his opponent. A 35 break brought him up to the 500 mark, and in the following hundred he made another good break of 42, his game then being spoiled by a kiss driving both the balls together with the skill of a conjurer, Hinds, however, who brought balls in baulk.
"follow on and who was playing some remarkably clever shots, evidently thought it time to finish the game when Pitt got over the 600, and he ran out with a 48 break amid the cheers of the spectators. The scores at the finish were:
Hinds
Pitt...
11
1000:
631
No comments yet.
Private notes are available after approval.