THE discussion that took place in the Chamber of Commerce at Hongkong on the 18th inst. on the currency question in Hongkong is a very interesting one, but. it is not so iuteresting as it would have been had the question been the direct one whether the gold standard should be adopted in the colony or not. As our readers know, the resolution moved t E. Asi "That in the opinion of this meeting it is desirable the Straits Currency Commission should extend its enquiries to Hongkong with a view to ascertaining whether reform of the Golony's currency arrangement is desirable," a somewhat tentative resolution after all. The meeting opened by a speech from the Chairman, Mr. C. S. Sharp, who explained that the Committee of the Chamber, which he represented, had had no intention to shelve the subject or stifle discussion of it by the Chamber, when they declined to call a special meeting, but "they were unable to see their way to advocate the policy of this colony taking steps in regard to a change in currency measures apart from China, and they therefore felt that there were no reasons on their part for calling a general mocting." They quite realised that if there was a sufficiently strong fecling on the subject, it would be easy to get five members to sign a requisition for a special meeting, and this course had been followed. The Committee did not overlook the advantage of securing stability; but there were great many interests to be considered, and they saw grave ris of eventual calamity and disaster, if the. colony entered upon any change of currency apart from China.
In moving the resolution already quoted, Mr. E. Osborne said that many residents of Hongkong disagreed with the Committee. All, he said, admit "that a great loss has taken j that most Chinese pref lace in the shrinkage of capital and investments, and that the dollar today is worth only one-half of what it was ten yearsago. Those whoagitate for reform hold that an unstable currency restricts and hampers trade, and that a depreciated dollar means in. creased expenditure, shrunken capital, and reduced savin; On the other hand there are those who contend that a depreciated dollar stimulates exports, that salaries rise in sympathy with increased expenditure, that larger dividends compensate for reduced capital, and in fact that eve: thing is adjusted in course of tim But all, Mr. Osborne said, would join hands in seeking whatever made for sound, wholesome trade, trade which brings reasonable and certain profit to all concerned mit. 'The prosperity of Hongkong is due to its unique position as' the seaport for Canton and the neighbouring districts north, {south, and west, ud to its being a first-class British fortress. It has no exports, its imports are only the goods consumed on the island and' the raw produce brought in for manufacture and re-export. On these imports the adoption of a gold standard will have no material effect: those now paid for in gold will s continue, and those now paid for in silver will continue to be paid for in silver, the only that could arise being the creation of an exchange business between C and Hongkong. The adoption of a gold standard will not increase the cost of labour, because the labourer does not look at the coin itself but its purchasing power, and if he get-as much rice for a penny pie in Hongkong a ten-cent piece in Canton, he will be perfectly ied with the penny, It is objected, said Mr. Osborne, that impor intended for distribution in China ill be bought in Canton instead of in Hongkong. Why! In any ease the buyer has to pay the gold value of the good Hongkong is a natural centre distribution which Canton not. Then it is said that Chinese for export abroad will be bought in Canton instead of Hongkong. But so they are now; no Canton produce is bought in Hongkong. No change in the currency will rob Hongkong of its eminence a transhipment port, because it is the only deepwater Customs-free port ble. There is no proof that Hongkong would lose the profit it makes by financing the Chinese interport trade but it would gum by the retention in the colony of profits made in the colony which are now invested] rency and say that he had benefited his capital'or inva and the dollar im: ates te on not doubled since the its present value imulated the exports of China.
Tt is lal to wait until the ts and China have and Mr. Osborne ug picture of the appointment and misery that have the fall in silk and ard, we should find our level again: money would flow into the colony, industries and trade would flourish. The colony now is in an unsound condition because its expenditure is largely in gold and its income in silver. "Mr. Osborne suggested the adoption of the English eu y of pounds, shillings, ani pence, importing the necessary coins and making them the sole log tender, leaving the British and M can dollars to be sold at bullion rat Befure closing, Mr. Osborne reminded the meeting that. the resolution did not commit those, who supported it ty approval of a gold currency, but only of a fall and independent enquiry. "Tu the mean= time," he said, "let us continue? help' ow especially as. by "se doing we may possibly influence China to adopt the one true standard of value under which the greatest nations of the earth have prospered and progressed."
Text read from the printed page and cleaned; old type leaves the occasional error.