To the Editor of the "Norra-Cuina Dairy News."
Sir,—Your recent editorials on the depreciation of China's subsidiary currency are very timely indeed and I hope the publicity you are giving this question will have some effect on those who are in a position to help the situation.
The heading of your articles "The Light Weight Copper Evil," however, is somewhat misleading. If the copper 10-cash pieces were actually debased the situation would be much worse and could hardly be corrected. I am of the opinion that these coins contain the requisite amount of copper, and that their depreciation is due for the most part to unlimited coinage and to lack of government backing in accepting them at face value. The Customs and post offices also refuse to lend their support: and only accept 10-cash coins at the depreciated rate of about 160 to the dollar.
The coins are easily minted and those who make them rely on the difference between their face value and their intrinsic value for their profit. This difference is about 50 per cent. of the face value.
It can be readily seen, therefore; that if the Government would immediately stop further coinage and would accept them, under certain conditions, at face, the situation would at once improve. Chinese coppers contain a great deal more good metal than do coppers of other countries, but the fact that China is flooded by 25 billion 10- cash pieces clearly shows that the depreciation is due primarily to super-abundance.
Such a situation, while serious, can be more easily' rectified than would be the case if the coins were debased.
I am, etc., Lanstne W. Hoyr.
Text read from the printed page and cleaned; old type leaves the occasional error.