Mr. Meade has returned. I don't think Sir W. Wagghorn's previous paper on the Government's action is as good as the telegram was prepared in accordance with our understanding with the Oriental Bank and I was instructed to instruct him to withdraw gradually the deposits from the Chartered Mercantile Bank. It need not therefore be telegraphed. I have approved.
Sw. 13.12 and as regards Mr. W. S. Smith to Minute add what he says almost in writing.
Rm 13/12 Inflation.
Bes. Jus with me.
Rm Confidential Confl 9:2018 19844. (record not kept) Secret 996 ulgare 1.
The Right Honble My Lord,
RECP REGS TI DEG 83 146 Government House November 4. 1883,
In continuation of my Confidential despatch of the 2nd inst., acknowledging your telegram of the 31st ult, I have now the honor to transmit a Memorandum by the Colonial Secretary and the Treasurer, recommending a course of proceeding with respect to the Government deposits in the Oriental Bank, which I have authorized, subject to your approval.
2. The position of that Bank was regarded here to be doubtful, but there have been no fears expressed about it.
The Earl of Derby