eae Mth Fear (988) 0000002 The purchasing power of the 20- cent coins as expressed through the exchange value is presently ad-Justed to the intrinsic value of the Tegular 9th year's coin, i.e. to 20- cent coins of a fineness of round 070 or more, This adjustment of values has, however, not been attained without difficulties and "fin-sacrifices," as will be seen from the fineness of the 10th year coin. Had the Mint continued Pursue the policy of reducing the silver-content gradually within reasonable limits, they would, with only a tame objection, in course: of time have been able to enforce 20cent coins of a fineness of about. 520 as legal tender in practice, for the same reason as the "legal tender" has presently a fineness of round 670 or more. The Mint is, however, apparently determined get a firm footing for their new 20- cent coins within the shortest pote sible time, having made at least two, attempts during this year. Since the Mint is now openly counterfeiting its own coins the prospects of success are very bright. Should they actually succeed, the exchange, which now is the theoretically and Practically 190 silver-cents 673 fine, will gradually drop until it again has stabilized and at about 170° silver-cents about 520. fine, The rates mentioned are based on the regular silver-dollar with a fineness of 889. The transition period will be characterized by suffering and loud protests and complaints about increased cost of living among Wage-earners and possible strikes. We ly experienced this for years, but a reduction of the silver-content of 25 per cent. in one year or two, as it may prove to be, is more serious than a reduction of 17 per cent. spread over Should the Mint choose unforfeit the 7th, 8th and 10th issues as they have done with the 9th year coin, values will soon have to adjust themselves to coins of a fineness of about 620. The pub-Vic's "resistance will weaken with every successful or partly successfal attempt made by the Mint. As soon as these latter coins represent fully 50 per cent. of all 20-cent coins in circulation there is nothing but a full value coin that will prevent all values to adjust themselves the intrinsic value of the coins 520 fine. ose For reasons which everybody' with a knowledge of political economy will understand, the me terests of the Canton Mint are diametrically opposite to those of their clients, i, the public. The wider the difference between the exchange value and the intrinsic value in favour of the former, the digger the profit for those who control the output of the Mint, and the more the sufferings of the' pub-lie eelyes to the intrinsic value of the coin which, through quantity, the majority must recognize as "legal tender," the profits of the Mint will Practically have been reduced "to nil, and the sufferings of the public will also practically' have come to an end. An equilibrium has been established and so the scale justice is once more tampered with until justice fs again administered by the economical laws and equil-
Tam, ete, Shanghai, Dée."17, 1926)
Text read from the printed page and cleaned; old type leaves the occasional error.