CONFIDENTIAL #

3

機密

Hang Seng Bank: Could only provide exchange

service to customers on a first-come-first-

served basis due to limited supply.

Kwong On Bank, Causeway Bay Received very

irregular supply of small coins from the Hong Kong & Shanghai Bank, which could be once a week or once a month. Regular patrons would be offered exchanges of up to $50 while other customers could only get exchanges of up to $201

Nanyang Commercial Bank: Offered exchanges only

at certain hours of the day.

Reasons for the Shortage

4..

The demand for small coins for public transport purposes was considered a major factor. Since public transport companies had adopted the "mechanised no-change" system which required the commuters to tender exact fares, the public, very naturally and inevitably, had taken to the hoarding or saving of as many one-cent coins as possible. The lack of exchange service at the major bus/tram stops only rendered it all the more necessary for people to retain small coins.

5.

Tagged on to the above point was the problem of

re-circulation. Some respondents believed that considerable delay was caused because re-circulation had to go through the banks first. It was reported that while KMB generally delivered their coins to the Hong Kong & Shanghai Bank, CMB deposited their coins only in banks owned by the Chiu Chow clan e.g. The Liu Chong Hing Bank, hence holding up the prompt re-circulation of a larger amount of coins. Quite a number of

respondents thought that the so-called problem or difficulty of re-circulation was not a natural phenomenon, that the public transport companies were deliberately slowing down the re-

circulation rate to aggravate the shortage situation thereby

forcing the common commuters to pay more fares and the banks to pay additional surcharges for the supply of coins.

Some

CONFIDENTIAL

/respondents

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