8:3
(1.
So far, however, from any apprehension being justified
The Stamp Ordinance having contributed since then to narrow the note circulation of the Banks, it appears from the enclosed return for last month, on the Ordinance coming into operation, that the circulation of notes of the Oriental Bank had risen to £656,000 and the monthly circulations of all the Banks to upwards of two millions.
This increase in note circulation is the more remarkable, as it can scarcely be a source of profit, because, owing to the depressed condition of trade at this moment, there are probably about 4 millions of bullion lying comparatively unprofitable in the vaults of the Banks.
With regard to the light duties, as established by the Hong Kong Stamp Ordinance, compared with those in India, which it imposes, I think the reduced duty on Bank notes during the limited period of six months may be regarded as a reasonable concession, whilst it may also be regarded as one to which this Government had been previously pledged.
It was also judged expedient by the Council to reduce the duty by