Quantities of the Hong Kong & Shanghai Bank being in Hong Kong itself & its Possessions I suppose to counterbalance English pressure & fall back let its position appear stronger: The great thing is that with unlimited help it may be trusted to shift for its own.
This despatch shows that the Local Government is proceeding in the right direction. On Oct 12 & since then their efforts have been approved by the Government of India in their telegram of Oct 31 warning them to withdraw deposits gradually.
The question of the note circulation of Chartered Banks is a matter for its Immediate remedy and cannot be approached in a half-hearted manner. Indeed it has affected in the slightest degree the panic. If anything, there is now the fear of Hong Kong in consequence of the near approach of chaos & ruin.
& receipt, & apparent action of the acting Governor is to proceed - Telegram received only by the Chartered Bank but the fact apparently is to withdraw gradually all the balances with the Chartered Bank but all funds are with the Chartered Bank. If Sargent thanks see this EN 26.11
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