COPY.
ENCLOSURE
27370
3185
1.
The statements in the first two paragraphs of Mr. Whitehead's letter are correct.
2.
The cash funds and call money have been earning interest at the rate of 2 per cent per annum on the daily balance.
3.
On the 30th June, the Government account with the Hong Kong and Shanghai Banking Corporation was overdrawn to the extent of $112,071.09.
4.
During July, two shipments of coins worth $250,000 each arrived and were at once disposed of. This caused the Government balance to temporarily exceed the authorised limits.
5.
On 28th July, the Crown Agents were advised by wire to draw $200,000. They replied "exchange at 7/4d; shall we defer drawing? Can arrange for funds" to which this Government replied "leave to your discretion".
6.
As the result of this correspondence, the Crown Agents deferred drawing till 10th September, but during September drew to the extent of $904,000.
7.
Since the middle of July, subsidiary coins to the value of $1,500,000 have been received and since 10th September, the Crown Agents have drawn to the extent of $1,554,000.