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The Directors have issued for circulation in Hong Kong and South China notes of different denominations not to exceed the total value of £51,000 for the past three years. These notes have been very favourably received by the public, especially by the Chinese; there being a considerable demand for them, the withdrawal of the Chartered Mercantile Bank issues having created a void, the Hongkong and Shanghai Banking Corporations and the Chartered Bank being unable to supply the want having issued to their full limit.
The Directors have understood from you that there is some Treasury order of old date that prevents their notes from being received at your office and by other Government Departments without previous sanction from Her Majesty's Treasury, and that any discrimination against the Bank's notes will considerably diminish their value to the Bank's Customers and be a public inconvenience. The Directors have the honour to request that you will apply to His Excellency the Governor to apply to the Secretary of State for the Colonies for whatever permission or sanction may be required to enable this Bank to circulate its notes as freely in the Government offices as the notes of other Banks.
The Directors are prepared to keep an adequate reserve against their note issue and to allow Government inspection and verification of that reserve. They undertake to furnish...