مهرماه ساسان

?" Proceed as chr Fiddian proposes

HBBC

180ct

with the allerterns there.

made in his minute

atene

EW 19 al

In the Reply to this Letter the following Number should be quoted.

14462

98

18338/98

7393

Sir,

C. O.

22579

637 RECO

(Rec 10 OCT 98:

TREASURY CHAMBERS,

8 October 1898

596

I have laid before the Lords Commissioners of Her Majesty's Treasury your letter of the 16th ultimo, with the enclosures thereto, relative to the paper currency of Hong Kong and, in particular, to the note- issue of the Hong Kong and Shanghae Banking Corporation.

No further action appears necessary at the present moment. But, as the Secretary of State for the Colonies is aware, the arrangement proposed in Mr Lucas' letter of the 15th of July last, under which the Bank

may issue notes in excess of its normal limit against a reserve of 100% in coin, was in the first instance limited to a period of one year; and it is therefore desirable that the whole question should be reviewed before July next, in order that, if necessary, some permanent arrange- ment may be made for providing the colony with paper

currency.

In these circumstances, Their Lordships would be glad if Mr Chamberlain would cause Them to be furnished, in the course of next spring, with information respecting the actual working of the temporary arrangement, shewing the maximum amount of the excess note-issue in each month up to March 1899. They would be glad to learn at the same time what progress has been made with the Government

note-issue

The Under Secretary of State

Colonial Office.

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