halleled is
26
This sum of $46,158 we are ready to hand over, or if required $83,333.33 being one third of $250,000.
We regret to be informed by our London Office
that the Note issue of the Straits Government will probably not be commenced before the end of this year which is most
unfortunate as the present limits of the note issuing Banks
in Singapore, Penang, and Hong-Kong have become quite inadequate to the steadily growing requirements of the expanding and
normal trade of these Colonies. The inadequate supply of paper
money in Hong-Kong has caused and is still causing the most
grave difficulties. Europeans and Chinese are suffering from
the injurious consequences of contraction of the circulating
medium.Legitimate business has been and is being hampered and
trade is being throttled. The market for imported goods, for
merchandise, for stocks, &c., are practically at a stand still,
prices are more or less nominal and lower all round than they
would be if there was a sufficiency of paper currency to carry
on and finance normal trade requirements. The Payees of che-
ques, drafts, and telegraphic transfers positively refuse to
receive payment thereof in Silver dollars and we fear that if
the European Banks declined to pay in notes and that if some
relief from the present intolerable pass cannot be obtained
the severe monetary crisis may develop into panic accompanied
by the usual untoward consequences.
I am,&c.,
(sd.) T.H. WHITEHEAD,
Manager.