50
cash on demand all their notes in
the
circulation. Factors copy of last return of notes in circulation and of specie held in reserve
by
155
different Banks. The subject of the
Extent to which Banks should be allowed to write paper currency in this Colony appears to require careful looking into. It is a question on which I am unable to express any opinion at present as though not yet been able to ascertain what conditions were
attached to the privileges beyond that of keeping a specie reserve of at least one third of the amount of issues. This condition has, I believe,
always
the
Enclosure 1
Enclosure 2
always been observed. But if the Oriental
Bank can issue, at each of its Agencies notes
to the extent of one third of its paid up
Capital, such issues might in this
Colony be very considerably in excess of
what it now is
7. I Enclose for Your Lordship's
information a copy of a report from the
Treasurer
relating
to the matters dealt
with in this despatch.
I have the honour to be
my
Lord,
Your Lordship's most obedient humble servant,
Administering the Government.
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