Page 363

Hongkong and Shanghai Banking Corpora-

tion,

Hongkong, 11th May, 1909.

Sir,

I am in receipt of your letter No. 8641/08

of the 15th ultimo, which was delivered during my temporary

absence from the Colony and in which you ask for the views of

this Corporation on the question of a Government Note Issue for

the Colony.

You give no particulars beyond the fact

that the proposed issue would be "on the lines of the system

already adopted in the Straits Settlements" with the full

details of which system I am not acquainted and where the

currency is now on the basis of a fixed exchange. In the

absence of information as to how it is intended to work the

proposed issue here and to deal with the reserve to be held

against it I find it difficult to express an opinion. I may

however say that I shall be glad to supply the Government with

the details of the working of this Bank's note issue.

I am etc.,

(sd.) J. R. M. Smith,

Chief Manager.

The Honourable

The Colonial Secretary,

Hongkong.

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Page 364

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(Enclosure 2)

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However, to follow the exact format required and focusing on the main content provided:

Hongkong and Shanghai Banking Corpora-tion, Hongkong, 11th May, 1909.

Sir,

I am in receipt of your letter No. 8641/08 of the 15th ultimo, which was delivered during my temporary absence from the Colony and in which you ask for the views of this Corporation on the question of a Government Note Issue for the Colony.

You give no particulars beyond the fact that the proposed issue would be "on the lines of the system already adopted in the Straits Settlements" with the full details of which system I am not acquainted and where the currency is now on the basis of a fixed exchange. In the absence of information as to how it is intended to work the proposed issue here and to deal with the reserve to be held against it I find it difficult to express an opinion. I may however say that I shall be glad to supply the Government with the details of the working of this Bank's note issue.

I am etc.,

(sd.) J. R. M. Smith, Chief Manager.

The Honourable The Colonial Secretary, Hongkong.

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