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we have been unable to obtain the notes of the Hong-Kong &
5
Shanghai Banking Corporation and there are no other notes ob-
tainable in the Colony in exchange for silver dollars of
which we always hold an ample reserve. We have therefore duly
advised our Head Office of the position of matters and direct-
ed our Directors' special attention to the fact that the pre-
sent limits of the note issuing Banks in Hong-Kong have be-
come quite inadequate to the steadily growing requirements
of the legitimate trade of this port and financial centre.
Doubtless our Head Office have taken the necessary steps and
arranged with the Lords Commissioners of Her Majesty's Trea-
sury for the necessary increase in the limit for this Colony.
We have reason to believe the amount which the Bank has power
to put into circulation at Shanghai and Bangkok has not been
fully issued and that the Bank's aggregate issue is well
within the maximum amount of eight million dollars. We have
further urged to the notice of our Directors the necessity of
reducing this Bank's note issue in the Straits and thus be
enabled to increase the Hong-Kong limit which will no doubt
be done so soon as the Colonial Government commence to issue
its notes in Singapore and Penang a Government note issue
having been decided upon and legislated for during 1897.We
understand the Hong-Kong Bank with the view of heing able to
cope with Hong-Kong's yearly increasing requirements in res-
pect of Bank Notes has decided to withdraw its note circula-
tion in Singapore and Penang so soon as the Straits Govern-
ment commence issuing notes which Sir Charles Mitchell, while
passing