No. 8.
SIR,
TREASURY,
February 17th, 1888.
I have the honour to acknowledge the receipt of your letter No. 211 of the 14th instant, referring to me for report the Secretary of State's Despatch No. 239 of December 27th, 1887, on the subject of the balances to be kept in this Colony.
2. The balances on fixed deposit are at present as follows:-
Hongkong and Shanghai Bank, Chartered Bank of India,.
New Oriental Bank,.........................
.$150,000
50,000
100,000
$300,000
3. All but the first of these will shortly be drawn to pay the Crown Agents' drafts, so that in that respect the directions of the Secretary of State will be carried out within a few weeks.
4. I beg to point out, with great deference, that the limit fixed in the Despatch under report is so low as to entail the most serious and inevitable embarrassment on this Department in its practical working. During the month of January the Treasury paid away no less than $172,000. During the first fortnight in February we paid $165,000. And a draft from the Crown Agents for $225,000 is shortly due. That amounts to $562,000 required within two inonths. Now, even allowing for the steady incoming of Revenue during the whole period, a floating balance of $200,000 is not enough, when payments have to be made on this scale. I would respectfully ask permission to keep on fixed deposit a sum not exceeding $200,000, and on current account a sum not exceeding $150,000, making a total margin of $350,000, which is the very least on which I can undertake to carry on the financial business of the Colony without undesirable interruptions.
5. I venture to observe that, if it is desired to keep the balance in this Colony as low as possible, there is an easy, and at the same time in every way advantageous way of accomplishing this. All that is necessary is a liberal supply of subsidiary silver coin. If the Crown Agents are instructel to send out $250,000 worth every quarter, until further notice, there will be no reason to complain of any accumula- tion of balances in this Colony, nor will there, I hope, be a recurrence of the discreditable and distressing scarcity of coin which has been prevailing for the last month. On Saturday last five cent pieces sold in the town for seven times their par value ($700 for a hundred dollars worth) and ten cent picces at four times their par value.
6. The Government was twitted, at a recent meeting of the Legislative Council, with indifference in not providing sufficient coin for the commonest daily wants of the Colony, and Lord DERBY'S Despatch No. 72 of March 20th, 1884, was quoted as a proof of this. In that Despatch His Lordship said, "As to the deficiency of subsidiary coins I need say nothing, as your Government has the remedy in its own hands." I trust I do not presume too far in saying that we have not had the remedy in our own hands. It is true that no requisition for coin has been actually refused, but the coins have been supplied with such obvious un- willingness and evident distrust that I have never sent in a Requisition without feeling that it probably would be refused. Had I really had the matter in my own hands, I should have requisitioned for at least double the amount of coia I have actually asked for.
7. In conclusion I would point out that, whilst the best interest we ever get on funds deposited at home is 44%, subject (as are also our remittances home) to charges for brokerage, we obtain 5% in this Colony, and never pay anything for brokerage under any circumstances. The plan I have suggested as to coins would do away
with any loss to the Colony thus arising.
I have the honour to be,
The Honourable F. STEWART, LL.D.,
Colonial Secretary,
&c.,
&6.9
&c.
Sir.
Your most obedient Servant,
A. LISTER, Treasurer.
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