4
Government was placing $35,000 fixed deposit for long periods on at a rate of only two per cent per annum, when any Bank was willing to allow at least 5 per cent.
5.
to say I am not, however, prepared to say that I should so soon have upset the arrangement which I found in existence on my arrival, had not the action of the Oriental Bank permitted a reconsideration of the position of affairs. Nevertheless I have not been slow to enter into an agreement with the Hongkong and Shanghai Banking Corporation, by which the current account will be kept with them and two per cent will be allowed on the minimum daily balances.
Inclosure
May, 1872.
there is no Condition as to the amount at which that balance must be kept.
I trust to receive your
6.
Lordships' approval of this course. My Executive Council were firmly of opinion that the opportunity of taking advantage of the more favourable terms of the Hongkong and Shanghai Bank should be seized without delay, and as that Bank stands on such a sound basis, and is accounted so highly in Commercial circles, I had no hesitation in agreeing to what