92
the state, & for Govt availing itself
of their letter,
I have remedy
in that the Govt should
issue on its own account some one dollar
notes: considering the line of their
Letters 10497/04 1073 & 13647 of 1874 in which they dilated very properly on the evils of allowing the Bank to have such an issue, it appears to me objectionable how to suggest that Govt should itself do something of the kind. It is true that they make the proposal in very guarded language under stringent restriction
which could not be applied
in the case
of the Bank; but still it appears that the principle at issue is much the same, & that it will be impossible for us to continue to remonstrate about the exclusion of other Colonial Banking Regulations, as the Treasury do in the last paragraph of this letter,
if we are to make special exceptions in favour of Govt issues. There may be a good deal to be said for considering
some such paper
as a legitimate function of
Govt with
a small
profit thereby; but in this case there are 4 or 5 banks already circulating paper in the Colony, & the Govt
would
be entering into competition with them, but with restrictions, that
would make the issue a source of loss
instead of gain.
I do not think that it is
a remedy
that should be tried, unless there is satisfactory evidence that nothing
else
is tangible - The best
I would be in favour of is the issue of a clean dollar of British
Currency, I looking back to your Minutes then thought such
I see you
on 5556/74 Jany
for Coinage feasible; as I then surmised Wyon's estimate does not hold out any hope that the English Mint could undertake such a work, he points out very clearly that the expense would be considerable & might be continuous, & I can not see who