16-
—
(8.)
The Earl of Carnarvon to Governor Sir A. E. Kennedy.
DOWNING STREET,
6th June, 1876.
SIR,
I have had under my consideration your despatch No. 20 of the 1st of February, respecting the application from the Hongkong and Shanghai Bank for permission to increase their One Dollar Note issue.
2. I have also received your despatch No. 62 of the 23rd of March, enclosing a letter from the local Manager of the Chartered Mercantile Bank relative to the grant of a similar privilege to that Bank.
3. I agree with the opinion you express that it is not advisable to make any further extension of the exceptional concession which you granted to the Hongkong and Shanghai Bank; and I have to request that you will inform both these Banks that Her Majesty's Government are unable to assent to any further issue of these notes by the Banks.
4. The suggestion of an issue by Government of notes of this denomination is at present under the consideration of Her Majesty's Government in connection with the general question of the currency of the Colony.
I have, &c.,
CARNARVON.
&C.,
&c.
Governor Sir A. E. KENNEDY, K.C.M.G., C.B.,
&C.
SIR,
(9.)
Sir Michael Hicks Beach to Governor Hennessy.
DOWNING STREET,
20th November, 1879.
I have the honour to transmit to you a copy of a correspondence which has recently passed between this Department and the Treasury on the subject of the currency of Hongkong and the Straits Settlements, and to inform you that I concur in the view expressed by the Lord Commissioners of the Treasury in their letter of the 17th of September last.
You will thus be enabled to dispose of various applications which you have received and forwarded to me in connection with this matter.
I shall be glad to learn your views on the proposal to issue Government One Dollar Notes, secured in the first instance on a deposit of specie.