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Against the notes in circulation in Hongkong and Shanghai. I suggest keeping 40% of the total authorized circulation of separate $4,500,000,- say $1,800,000 in a Treasury in Hongkong, the keys of which could be kept by an Officer or Officers of Government.
Against the total authorized circulation in the Straits Settlements of $2,500,000. I propose keeping $1,000,000 in Singapore and Penang under the same conditions as detailed above with regard to Hongkong.
Our Note Registers in Hongkong and the Straits to be always open to the inspection of the Officers of the respective Governments.
In the event at any time temporarily wanting to exceed the proposed amounts to be authorized for Hongkong and the Straits, I suggest that cash be deposited in the separate Treasuries to the full extent of such over issues, said cash to be released when the issues stand at, or under their normal amounts.
The small issue at Shanghai is a very great public convenience, and we would not like to discontinue it, but at no time will we exceed the issue of $500,000 now asked for.
If the above proposals are adopted, as I hope they will be, our note Issues would be in a satisfactory position not only for the Bank, but also as regards holders of the notes, who would have the following
KOL AND the