extends Ordiance 1. of 1899 regarding the excess Note Issue, up to the 13th April 1908 that being the date of expiry of the present powers of the Bank under the other Ordinances,
issue notes m
The powers of the Chartered Bank on the other hand, are regulated by Charter embodied in the Ordinance of 12 Dec 1894 (in 4560/95/Straits)
power to excess of the limit provided by the Charter can only be given by a supplemental Charter under an Ordinance. I cannot be conferred by local ordinance, & the privilege, if given should extend to 29 Dec 1904, when the Charter at present extends.
I ask Treasury if they see any objection to such an amendment of the Charter, the same subject to the conditions contained in Ordinance 1 of 1899 to put this bank on a footing as the HK. & Shanghai Bank. Re your Treasury letter of 21st (45472), the bank has already reduced it's note circulation in the Straits Settlements in order to increase it's circulation at Hong Kong: still both banks think the HK & Shanghai Bank have austs with ref to send Treasury, copy on 15878/00, papers of the Reports on the Straits Govt, Note Issue for 1900 & 1901 from which they will observe that that issue has now reached nearly $10,000,000, and that (as per last par of 1901 Report) the HK & Shanghai Bank notes are being gradually withdrawn so as to increase the amount which the bank can issue in Hong Kong, but notwithstanding this under Ordinance 1 of 1899 on 27 March, according to the latest return the excess Note issue amounted to $5,000,000, so that the necessity for a considerable issue of notes at HKong is established & there seems to be no reason why the Chartered Bank should not be given the same powers as the other bank in this respect.
hur Cox Me Lucas
So far as this is concerned with that part of Mr. Johnson's minute which I have marked "A", I agree.
J.J.R. 8/5
Gid. 3/5
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