Since the close of the last quarter of 1876 when it was $20,000, it has been increasing at the following rate:
31st March 1877 - $80,000.
30th June 1877 - $160,000.
30th Sept 1877 - $210,000,
and it now amounts to $250,000.
I transcribe for Your Lordship's information copies of some recent minutes on the subject.
In the despatch drawn by our King, attention having been called to the large balance ($410,941) at the Hong Shanghai Bank, I requested the Acting Colonial Secretary and the Acting Colonial Treasurer, Mr May, to place it at interest as far as possible.
The Acting Colonial Secretary thought it prudent. They reported that $20,000 might be deposited in the Oriental Bank at 3, 6, 9 & 12 months at 5 per cent interest.
When the Warrant came for signature the following Minute was made:-
"I have signed the Warrant. The state of our balances and revenue returns would seem to justify another deposit of $20,000 at 5 per cent. I should like to know the views of Mr. Smith and Mr. May on this particular point;
The general question of how much of this money we should have at call is necessary.
(Signed) J. Pope Hennessy
13 Oct: 1877