Hong Kong 29 Nov 1935 PAQUEBOT Cover, Unusual China/Hong Kong Exchange Rate
" HONG KONG / 8 30 / 29 NOV / 35 " Nov. 29, 1935 cancel Along with " PAQUEBOT " in two rectangle cancels that tie two 1931 Sun Yat Sen 2 Cent Green 2nd London Prints to Cover. A very unusual 1935 Hong Kong paquebot cover to the United States, franked with a pair of 1931 China Sun Yat Sen 2 cent green 2nd London print stamps (Chan #320, wide stamps, type A). The pre-printed return address is LINGMAN UNIVERSITY / CANTON, CHINA. This international cover is addressed to Pomona College in Claremont, California.
Scans are of the actual cover listed. Just before June 1935, China and Hong Kong remained the only two countries in the entire world still on the Silver Standard. By then, all other countries had gone off the Silver Standard because of the impact of the economic depression of the 1930's. Before China's change in June 1935, 4 cents Chinese was equal in silver to 4 cents Hong Kong.
By June 1935, China's withdrawal from the Silver Standard meant the Chinese and Hong Kong currencies were no longer at par. From June 1, 1935 to February 1, 1936, the international one-ounce surface rate from China to the US was 20 cents Chinese.In early November, 1935, still Hong Kong remained the only country on the Silver Standard (having used the Silver Dollar as Legal Tender since 1863). The Chinese Yuan was not directly linked to Sterling.
It takes time for communications about local rates to become known between countries. In 1877, Hong Kong became a member of the Universal Postal Union (UPU) as a member country of the British Overseas Territories. That special rate was akin to a "domestic" rate, but higher than the internal rates of Britain alone.The British Overseas Territories were considered by the UPU as "one country" for mailing purposes. At the time of mailing, Hong Kong's one-ounce international surface rate to countries other than Britain or a British Overseas Territories country was 10 cents Hong Kong.
The clerk receiving it cancels it with paquebot markings. This cover comes from a very short transition period (October through December 1935) where serious questions exist about the postal rates of Hong Kong and China. This cover clarifies such rates. China had lowered its international surface rate from 25 cents to 20 cents effective June 1, 1935 when it went off the Silver Standard.
That lower 20 cents rate was in effect at the time of mailing. The decrease in China's international 1 oz. Surface rate to 20 cents Chinese is indicative of the fact that when China went off the Silver Standard, for postal purposes the value of the Chinese dollar (Yuan) went up. The amount of local currency needed to cover such service is determined under U.
Rules based on the fixed price for the service in effect at the time as agreed to by participating countries. The conversion of the local currency into a fixed price is derived from the local currency's equivalency in Swiss franc to the fixed price at the time the new rate is determined. After June 1, 1935, with China now off the Silver Standard, the initial euphoria of the new currency rapidly wore off.
By the time of mailing this cover 6 months later in November 1935, Chinese currency had reversed and dropped in value. Even though 4 cents Chinese had been equivalent to 4 cents Hong Kong before June 1, 1935, by November, 1935, 4 cents Chinese was worth less than 4 cents Hong Kong. This item is in the category "Stamps\British Colonies & Territories\Hong Kong (until 1997)". The seller is "abctoo" and is located in this country: US.
This item can be shipped worldwide.- Denomination: 4 cents
- Year of Issue: 1935
- Type: Cover
- Place of Origin: Hong Kong (until 1997)
- Era: George V (1910-1936)
- Quality: Postally Used Cover
- Currency: China
- Grade: Highly Collectible
- Country/Region of Manufacture: China
- Cancellation Type: Paquebot
- Modified Item: No
- Certification: Original