the present as an opportune moment for setting up a new Note issue by a private Bank in Hong Kong. The period before the 31st July is very short for carrying through the necessary arrangements for that purpose, and in view of the fact that the excess circulation of the Corporation on the 28th February last amounted to over $3,600,000 or more than one half of that Bank's total circulation in Hong Kong, there would possibly be a risk of serious inconvenience to the community if the Mercantile Bank were unable to get a considerable quantity of notes into circulation by that date.
My Lords observe also that Mr Chamberlain in his despatch of the 30th January expressed a preference for a Government Note issue as the means for meeting the increased requirements of Hong Kong hereafter, and that the Governor's reply indicates a readiness to consider the expediency of such an issue if the results in the Straits Settlements prove favourable. It is not desirable to increase the number of private Banks of issue in the Colony if a State issue is likely to be shortly adopted.
For these reasons it appears to My Lords, upon the information before Them, that the simplest course, under present circumstances, would be to extend the operation of clause 3 of the Hong Kong Ordinance No. 1 of 1899 for a further period of six or twelve months (as may seem desirable) from the 31st July. The Notes issued under that power are issued upon terms which can give the Bank no great reason to object to their discontinuance whenever events may require it.
I am, Sir,
Your obedient servant,
Euthamillion
fr Individual.
899
July
evious Paper.
yue 9
Page 363
HONG KONG
No. 19388
(Subject.)
Note Issue Security
0.
217
DOMESTIC.
10008
CX
F? 2- JUL 19
Ahong Shanghai Bank
Carcars that no sufficient pound have been shown to patify apply to depoort securities instead of coin being granted
(Minutes.)
Telegraph to Hong
Pathop Referring
bastinado
Logester fad
Refer a do you let of 16 July a purpos H.K.JS. Banking Corporation Proposal
athard. 7
Sur 25/7
Foreign
Page 363
Subsequent Paper.
9396
Strails
Page 363