for the principle on which he proposed to base a reform of the currency of the Colony, viz. the official re-establishment of a silver standard based on the Mexican dollar. By a Royal proclamation, dated January 9, 1863, but not published until May 2, 1863, it was determined that, from a date thereafter to be notified, the former currency proclamations of 1845, 1853 and 1857 (mentioned above) should be wholly or partially cancelled, and Mexican or other silver dollars of equal value should, together with those silver coins (of Mexican standard) and bronze cents and cash (being hundredth or thousandth parts of the Mexican dollar) which were to be issued by H.M. Mint, be the only legal tender of payment in the Colony. The date here referred to was, however, not fixed until the Hongkong Mint was established (1865). But meanwhile Sir Hercules did two things: he obtained from England a supply of subsidiary coins (June 26, 1863) and set to work to move the Home Government to sanction the immediate establishment of a Mint at Hongkong. In April, 1863, the first consignment of subsidiary coins arrived. They consisted of silver ten-cent pieces, bronze cents and bronze mils (cash). The intrinsic value of the silver ten-cent pieces was such as to make $3 face value equal to $2·987 intrinsic value. With direct reference to the arguments previously advanced by the Treasury Board in condemnation of Sir J. Bowring's proposal, Sir Hercules represented to H.M. Government—that Mexican dollars now passed current in large quantities even in Shanghai; that the dollar had already been declared the only legal tender of payment in Hongkong; that the supply of Mexican dollars had become quite insufficient in consequence of the new demand for Japan; that even in the silk districts of Central China payments, formerly settled in sycee, had now to be made in undefaced Mexican dollars which were at a high premium; that consequently a British dollar of a value equal to that of the Mexican was urgently required. In consequence of these representations the Lords Commissioners of H.M. Treasury approved (April 10, 1863) of the proposal of Sir Hercules and suggested that the proposed Mint should be established in Hongkong by local
