equal in value to one third of the total note issue
of each concern, we have refused to allow any extension
of their issues as defined by Charter or Ord. except
with the Govt.
on deposit of the coin or bullion to the full extent
of the excess issue.
I would therefore send copy of this, to the Treas.
with copy of corresp. of subsequent date 8831/96 and 27428/97 pointing out that our letter on the last
paper appears to have been ignored, and propose to reply
that the policy now pursued by H.M.Govt. is to allow
Govt. Note issues only, but that where private note
issues are permitted it is required that they should
be covered by coin or securities deposited with the Govt
to the full extent of the issue, that in the case of
excess issues by the Chartered and H.K. and S. Banks,
over and above the amount laid down in the charter and
Ord. respectively governing their issues, a deposit of
coin or bullion to the full extent of the overissue
is required, and that in these circs. Lord Elgin feels
it impossible to allow the Bank of China's notes to be
accepted at Govt. Offices on the terms proposed, and
fears that he could not consent to any increase in their
note issue at H.Kong even on the present conditions
of circulation (i.e. non-acceptance by the Govt.).
...
C.P.L. 28
R520 July 22.06
Dear Lord Elgin
RECE
27178
Rec 25 JUL 06
I beg your favourable
attention
to the enclosed letter
to you from Mr. Munro, the London Manager
of the National Bank
of which I
...