OFFICE
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Ease in which large sums are transferred, but as they do not circulate among the general community, the amount in circulation varies considerably, that in place of confining ourselves to the reserve, the value is enjoined by Statute.
By His Majesty's Charter of Incorporation, our Manager is compelled at all times to keep sufficient coin in hand to meet the whole of the Notes issued.
And as this condition renders the circulation profitless to the Corporation, the infliction of a tax would create inevitable loss.
There appears therefore to be but little doubt that the imposition of the proposed Duty will lead the various Banks interested seriously to entertain the question of calling in their Notes, and I need not pause to point out to your Lordship the disadvantage and inconvenience to the Colonial Government and trade generally, which such a retrograde movement would involve, but
The Right Honorable
The Earl of Carnarvon