13
J
From enquiries made through Her Majesty's Consuls at Amoy and Swatow the Dollar Notes do not appear to be in great demand at those Ports, and the circulation is at present, therefore, chiefly absorbed by the Chinese at Canton and Hongkong; but there is little doubt that, as in the case of the subsidiary coinage, the Dollar Notes would circulate largely through the Southern ports of China if the issue could be increased.
I am not disposed, however, to recommend any extension in favour of the Hongkong and Shanghai Bank, as in my opinion an error was committed in conceding the privilege to one Bank only.
Moreover, the issue of Notes should in my opinion belong to Government, and it seems to me, therefore, that a commencement might well be made with respect to those of One Dollar. I do not see, too, why the Government should not keep in its own hands, as far as feasible, a power which might be made available to a limited extent in procuring funds for public works.
As regards the questions asked by the Treasury as to the terms in which per- mission was given to the Hongkong and Shanghai Bank, and the power of the Government to recall it, and in respect to the amount of the whole note circulation and the proportion which One Dollar Notes bear to the whole issue, I have the honour to inform Your Lordship:·
1st.
That permission was granted under Section XII of Ordinance 5 of 1866, and that there appears to be no legal impediment to its recall if needed.
2nd. That the total amount of notes in circulation on the 1st of April, 1875 was $1,672,844 and that the proportion thereof of One Dollar Notes was rather more than 1/7th or $226,000.
The Right Honourable
THE EARL OF CARNARVON,
&C.,
&C.
&c.
I have, &c.,
(6..)
J. GARDINER AUSTIN,
Administrator.
MY LORD,
Governor Sir A. E. Kennedy to the Earl of Carnarvon.
GOVERNMENT HOUSE, HONGKONG, 1st February, 1876.
I have the honour to forward copy of two applications from Mr. GREIG, Chief Manager of the Hongkong and Shanghai Banking Corporation, for permission to increase the One Dollar Note issue by $74,000, and thus bring the issue up to $300,000.