of the Crown through its Offices,
is prohibited and
that the
Colonial Government is bound
to
refuse
to recognize notes so issued.
If the notes are in the ordinary form they would probably be held in a
Law
to be valid promissory notes.
serving they are
not good Bank notes
those taking them would probably be able
to recover
them.
If the National Bank wish the Government to recognize
as Bank notes they
will either have to
have the issue sanctioned
in the same way
as the Hongkong & Shanghai Banking Corporation has
done, viz: by local Ordinance
(See Ordinance No. 5 of 1866 and No. 21 of 1882)
or by Royal Charter.
It is, from any point of view, surprising that this has not been done.
It is a high prerogative of the Crown to regulate the issue
of paper
and the Government
desire to stop this issue, it will, in my opinion be within the local Government's
right to do
so by legislation, from legal machinery. From what I have heard outside Hongkong
I believe that this note issue
has been regarded favourably by the Hongkong and Shanghai Bank
and before it is introduced
the sanction of the Secretary of State should be obtained.
4th June, 1894.
(87) A. I. Leach
Acting Attorney General