The Governor of Hongkong to the Secretary of State for the Colonies.
269
(Received Colonial Office 12.12 p.m. 18th February 1907)
Referring to your telegram of 1st February Hongkong and Shanghai Banking Corporation urge that note issue be allowed to increase automatically with capital as heretofore; note issue in excess of paid-up capital from time to time to be covered by deposit coin or bullion. No objection to course proposed which is in accordance with Ordinances affecting Hongkong and Shanghai Banking Corporation in force. Proposed increase of capital due to trade expansion and Hongkong and Shanghai Banking Corporation requires note issue correspondingly to be increased to finance that trade and meet keen competition from foreign banks which issue notes to a large and growing extent in China.
NATHAN.