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authorised by its Charters. There being no Gold Currency in the places in which the Bank's business is carried on, the issue is entirely payable in silver currency based upon the equivalent amount of such currency to the £1 Sterling as fixed by its Charters and regulations.
The issue by the Bank of its Notes has been found to be very beneficial to Traders and the Public generally who largely avail themselves of it.
The circulation of Notes from the Straits Settlements also serves Territories in the Malay Peninsula newly opened up under British protection, and now largely developing for trade purposes.
In Hongkong where the currency is in dollars by weight not counted, the Chinese holders of Cheques upon the Bank insist on being paid in Notes and they object frequently to being paid in pieces of silver chopped which is necessary in order to make up the equivalent weight.
In Countries to which a Gold circulation does not apply, the use of such Notes is of great advantage to Traders, Natives and others as compared with the carrying considerable weights of silver and the chopping and mutilating of coins which is necessary in places where silver is exchanged by weight against cheques.
Until late years there were two other Banks (viz. The Oriental Banking Corporation and the Chartered Mercantile Bank of India, London & China) which had an extensive Note circulation in the places referred to. Owing however to the suspension of the former Bank in the year 1884, and the reconstruction of the latter Bank as a limited Bank, the Note issues of these two Banks have ceased. The authorised Note issue therefore now available to Traders and the community generally is greatly diminished, whilst on the other hand the volume of trade has largely and progressively increased and is still increasing.
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