THE CHINESE INDEMNITY

Press, Volume LX, Issue 11483, 16 January 1903, Page 5

THE CHINESE INDEMNITY

CABLE NEWS.

PAYMENT IN GOLD OR SILVER. United Press Association—By Electrio Telegraph—Copyright. (Received January 15th, 8.25. a-m.) LONDON, January 14. China suggest* that she should pay the indemnity on a gotd basis, if allowed to collect the import duties in gold. America refused the suggestion, alleging that the United States was willing to accept tbe indemnity in silver. China has this month to pay tbe instalment due on account of the Boxer indemnity. This instalment is 12,899,000 taels —namely, 9,829,000 taels for interest and sinking "fund, plus 3,000,000 taels which China elected to pay annually on account cf the arrears of last years' payment, plus 180,000 taels for the iast half-year's interest on the arrear, less 110,000 tacts held by the txinkexs' commission, a. he tael has fallen from 3s to 2s 4j|d, and is still falling. Assuming the latter rate, China will require to remit an additional three and a half _______ lion taels to meeA the deficitTe.egraphing on December 3rd last, the Shanghai correspondent of the London "Times" said:—"The continued depreciation of silver is resulting in conditions calculated to produce a serious financial crisis. The import trade is at a standstill, and as regards exports there is no prospect of an immediate increase." The Hong Kong correspondent of the same journal said, cm the same date: —"The depreciation of silver and the collapse of the Eastern exchange, have paralysed the trade situation more seriously than was the case in 1892. It has been suggested that the Colonial Currency Commission should extend its enquiry to Hong Kong, with a view to the fixity of the exchange. Local experts maintain that it would be absolutely impossible to establish a gold standard in Hong Kong while China has a silver standard- The Government salaries are paid in sterling at the exchange of three shillings, and the revenue is collected in silver. Meanwhile hotels have adopted a sterling tariff, and the prices of most commodities of consumption are enhanoed. The position oi salaried employees making IJome remdttanoes is so seriou* that employers axe either paying sterling, or increased amounts in dollars. In spite of the slight recovery of the exchange, all would welcome fixity of exchange if it were possible of accomplishment."