Commence-
ment.
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7. This Ordinance shall not come into operation until His Majesty's pleasure shall have been signified by Government notification of non-disallowance published in the Gazette.
Objects and Reasons.
The Bank of Canton Limited was incorporated in Hong- kong in 1912 with a capital of $2,000,000. In 1919 in pursuance of special resolution under Section 3 of Ordi- nance No. 6 of 1919 the capital was converted into sterling and increased to £1,000,000. It has since been increased further to £1,200,000. The conversion of the capital from silver into gold was at the time considered desirable in view of anticipated extensions of business in and large subscriptions to come from "Gold" countries but in practice such anticipations have only partially been realised and the Directors recognise that they are now faced with altered conditions which tend to centre the supreme interest of the Bank in the Far Eastern Tradie, particularly in the Treaty Ports. The Bank has now branches in Hankow and Swatow as well as in Shanghai and Canton, and intends shortly to open branches in other parts of China, a policy which will entail large dealings in silver and with the Head Office of the Bank situated in Hongkong where the currency is likewise in silver it is considered that on all grounds the balance of convenience lies, and will in future always lie, in favour of having its capital in silver. It is therefore desired to reconvert the capital into Hongkong Currency, and with a view to this being final clause 6 of the Bill repeals the Ordinance No. 6 of 1919.
6th May, 1926.