OF Y.
Enclosure 3.
626
0.0.
、di nord*@hap birode dne intero" zsdź nokubgo to vincova ma T
anoh *} \ ~\s gre to bourfroðilien edź of amada egrefoxe ontw
bevoch st hirov snobtaniɗo 15% manurde 20 vennent spin wilt at de
IIN * CAT erods won må valfoh mild daily bevelled aray *1 *}
n* #fhy boog s "o" $2
Umno Poliw mantog wit Ana CRAM
anods achiny atm of tertunt gubilovne sved togetIsnx" at "no woy ?t
„tobre-hotel wit flabemut of bath ad IIMIG I
NÓMI ŠUBBAng elle minnbluaoo Alo:W MAY 20
gutuledo 2tref eftrnedrali uld og motros¿do ou mea * fuze to
um ton Brow mumm) Isor£ stars meement edom to zdnin edt
•[0 Nude! #imel znevreyon s enibleng atom
fisnor mott kosmqeb to Jostte to eignexi
LEN, EPES.
„AI za bazenent 000,000, AS
000, OAEŽ.....8\/
38 862 rra
-568,608, 8.
•
A§ ## 868, 1667
nokruipenge
antroef ruins mag 226,60) &I¬nge auntreft to solturimin
.EZE, IN to mueves don
.HomoffT M .A (.br)
ADRL
(
Extract from the Minutes of the Meeting of the Executive
Council, held on the 19th. July, 1909.
· 35645
RECS
(REG: 30 OCT 09
Council unanimously approved of the princi-
-ple of a Government Note Issue, but Mr. E. A. Hewett expressed
the opinion that the present time was inopportune because (1)
China ray reform her currency in the near future: (2) the rate
of exchange is now low: and (3) trade is bad and notes will be
at premium. Mr. Hewett added that in his opinion Mr. A. M.
Thomson had under-estimated the cost of instituting and main-
-taining a Government Note Issue.
Sir Paul Chater suggested that in the event
of 30 millions note issue being made with a dollar for dollar
deposit, 15 millions should be kept in reserve, but that the
remaining 15 millions should not be remitted to England, but
should be invested in the Colony in 1st. class mortgages ap- -proved by the Director of Public Works and the Land Officer. Sir Paul Chater argued that this would (1) obviate the danger of loss on exchange in enitting to England: (2) secure an interest of or at least 6 on the investment, instead of 31: (3) give confidence to local investors, Chinese and European, and thereby promote the sale of property in Kowloon and elsewhere. Sir Paul added that to his knowledge no Insurance Company had lost a penny on investments in property mortgages in the
Colony.
Mr. Thomson replied that the possibility of China reforming her currency was remote, but that in any case a Government note issue was required for the purpose of main- -taining a proper currency within this Colony: that when the note issue was in the hands of the Government, and not in the hands of local Banks, notes would no longer be at a preniwa: that there would be no danger of loss on exchange in ranitting to England as the Colony already possessed large sterling
liabilities