(4.)
The Earl of Carnarvon to Governor Sir A. E. Kennedy.
DOWNING STREET,
31st March, 1875.
SIR,
With reference to your despatch, No. 60, of the 1st of April last, I have the honour to transmit to you, for your information, copies of the correspondence that has since passed between this Department and the Treasury, relative to the issue of One Dollar Notes by the Hongkong and Shanghai Banking Corporation.
2. I have to instruct you to inform the Corporation that the issue of One Dollar Notes is to be restricted for the present to the amount already in circulation, and in future you will have the goodness not to exercise the power vested in you by the 12th clause of Ordinance No. 5 of 1866, without first referring the matter for the approval of the Secretary of State.
3. I shall be obliged to you to ascertain, as far as possible, the classes of the population amongst whom the One Dollar Notes already issued have been absorbed, and also to report to me the result of this experiment, the operation of which should be carefully watched.
4. You will also bear in mind that the permission now given to allow these notes to remain in circulation is not to be considered a precedent for extending any similar facilities to other Banking Companies.
I have, &c.,
CARNARVON.
Governor Sir A. E. KENNEDY, K.C.M.G., C.B.
Fe
&c.,
HONGKONG.
The Colonial Office to the Treasury.
DOWNING STREET,
16th June, 1874.
SIR,
With reference to your letter of the 6th of October last, relating to the issue of One Dollar Notes by the Hongkong and Shanghai Banking Corporation, I am directed by the Earl of CARNARVON to transmit to you, to be laid before the Lords of the Treasury, a copy of a despatch which Lord KIMBERLEY addressed to the Governor of Hongkong transmitting your letter, and of a despatch which has lately been received from Sir A. KENNEDY.