The Agents
Ar. Collins
Mr. Fiddes
1804/H.Kong, Straits
Gentlemen,
21 Jan. 1907.
2280 D.
I am directed by the Earl of Elgin to acknowledge the receipt of your letter No. 1804 and A. of the 14th inst., regarding the annual valuation of Securities held against the note issues of the H.K. and Shanghai and Chartered Banks.
Lord Elgin considers that the proper course is to require securities from the Banks to cover one third of their total issues at the rate of the British or Mexican dollar, (actually or potentially) plus one third of the value of their notes circulating in the Malay Peninsula. The amount of the latter notes should be taken as $750,000 in the case of the H.K. and Shanghai Bank, and at $2,250,000 in the case of the Chartered Bank.
I am to ask that the annual return may be drawn up on this basis.
I am, &c.
(Signed) C. P. LUCAS.