the Banks should stand at a premium
over legal tender, and that the needs
of the community for paper currency
should be so imperfectly met. In
these circumstanceshe is of opinion
that the best course will be to grant
to the Mercantile Bank of India the
privileges now given to the Charter-
ed Bank and the Hong Kong and Shanghai 1
Banking Corporation. In this connex-
ion I am to refer to the correspond-
ence ending with Treasury letter
No.9321/99 of the 9th of June 1899.
The consideration of the proposal
was at that time deferred since it
appeared possible that a Government
issue might shortly be made. But
Lord Crewe considers that as, in
his opinion, the Government should
1
not undertake to issue notes, the
claims of the Mercantile Bank should
not be disregarded in making the
necessary
0
C
DRAFT.
necessary arrangements for meeting
a public want.
8.
He would propose therefore
49
that the Mercantile Bank should be
permitted to issue notes up to the
value of their paid up capital on
with the Sout
A
depositing coin or securities to
this amount the value of one third of the notes-
Dirly
issued; and should be allowed to
this ambi issue notes in excess of that vaine
with the Fou? bullion on depositing coin
ان
to
A
A
the
14807/99
the full face value of every notes
issued in excess.
Their Lordships
are aware that the other two Banks
have been given these terms, and
Lord Crewe feels that it would be
difficult to impose conditions which
would be more unfavourable to the
Mercantile Bank than to the other
Banks. Their notes would of course
not be legal/tender.
legal/
9.