New-York tribune., 1918-01-20

| " silver or in paper currency
based upon silver, Hong Kong
and its South China business field are
having less local trouble at the pres.
ent time with their currency than
countries in the Far East whose money
Is based upon gold. After all. the ups
and downs and the retirement of large
quantities Of subsidiary coins to place
Hong kong's currency on an equality
with its various elements, the present
peaceful course Of it's monetary af-
fairs seems remarkable.
AT present subsidiary coins are in
circulation in the colony substantially
on par with the standard silver dol
lar. BY reason Of the prohibition of
thu export of silver from the colony,
the Hong Kong paper dollar is in circu-
latlon at discount compared with sill
yer in the South China provinces, but
this is duo to the fact that so long as
the export Of silver is prohibited the
paper dollar is not convertible into the
silver it represents. except in Hong
Kong. In general way the value of
Hong Kong and South China currency in
gold goes up and down with the course
Of the silver market; but it's various
elements remain in the same relation to
each other, and there has been no
trouble with the boarding Of silver
coin Of any sort.
Difficulties in Other Countries.
Other countries in the Far East have
had great difficulty by reason of the
fact that the high price of silver has
carried the value Of their subsidiary
and other silver cois.s higher than the
gold value Of these coins. The result
has been that even where there has
been prohibition of the export of
such coins they have disappeared from
circulation, either being melted for
sale as bullion or for use in the arts
or simply boarded. The situation has
become so embarrassing that all gold
standard countries in the East have
been compelled to adopt paper cur
rency for subsidiary circulation. In
the Philippines paper currency has
been issued by the Philippine National
Bank in denominations of so centavos
($.O25 U. S. gold) to the amount of L.
100000 pesos ($500,000 gold), in two
issues of 100000 pesos each, and the
government of the island territory is
seeking an appropriation for the es-
tablishment Of mint and authority to
issue small denomination notes on its
own account. The notes issued by the
bank are secured by deposits of gold
coin with the territorial government.
1t is generally understood that the
Philippine Legislature during its cur
rent session will pass legislation re-
ducing the amount Of silver in Phil
ippine coins to the amount Of metal
placed in corresponding coins of the
United States. This will tend to re-
duce embarrassment in the future
from extraordinary rises in the value
Of silver.
Japan Issues Small Notes
In Japan, according to newspaper
"AAAAo ~AS0A''SAI, Pdpc1 currency Is Oelng
issued in denominations Of so. 20 and
10 sen respectively $O.25, SOLO and
S005 United States gold). Japanese
newspapers announce that this paper
currency will be issued to the amount
of 30,oo0,O0o yen (s15, 100000 gold) dur
ing the current fiscal year in three in
stalmcnts. The government of Singa-
pore Straits Settlements, where fixed
exchange for silver currency is in op-
GRAFTON, has also been compelled to
issue paper currency in denominations
OF 10 cents and rs cents local currency
or about $0.055 and $0.135 United
States gold
A considerable number of small,
value notes has been issued by the gov
ernment of the Province of Kwanpsi. in
China, to meet the shortage of silver
felt all over provincial China, and also
as matter of loan. The notes ara
bought and sold as silver certificates in
Hong Kong by money changers at
discount of about 20 per cent. Thew
represent partial effort of the author.
tiles to replace silver currency sent to
Shanghai at the beginning of the move.
ment Of silver abroad and for invest
ment IN gold securities and for specu-