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security for their redemption in defiance of the regulations issued by the Ministry of Finance, with the sanction of the Chinese Government, on the 29th July, 1909. The following private Chinese banks have to my knowledge failed recently owing to their being unable to cash their own notes issued by them without proper security :----
The Tek Boan Cheang Bank, Swatow;
The Ewo Bank, Swatow;
and it is possible that other banks in other parts of China have failed for the same reason. Chinese and foreigners alike are affected by the financial crisis thus created, and in the interests of the trade of the colony I would ask you to draw the most serious attention of the Chinese Government to the disastrous consequences of the blind disregard of regulations, the observance of which prudence, if nothing else, should have dictated.
I bave, &c.
F. H. MAY, Officer administering the Government,
Enclosure 3 in No. 1,
Extract from the "South China Morning Post" of October 19, 1910.
Commencement of the Minting of Subsidiary Coinage.
THE Canton mint or currency factory has, since the 5th moon, stopped minting all coins, and the expenditure for its upkeep bas run short, all the surplus funds and odds and ends of metal left on the ground of the mint having all been exhausted during the last two months.
At present, on account of the tightness of the money market, the chief and assistant directors of the currency factory have telegraphed to the Board of Finance to ask for instructions whether or not the minting of the 20-cent subsidiary coins should be forthwith commenced for use and circulation to meet the demand of the market. Now, the Board of Finance has sent them a telegram in reply allowing the minting to be commenced forthwith. All the officers, workmen, and coolies belonging to this currency factory have, according to the board's directions, proceeded this day to the factory to start work for coining the 20-cent silver pieces.
Bank Guild's Circular on Kwangtung Notes.
The public is hereby notified that owing to the tightness of the money market, caused by the Canton Yuen Fung Yun Bank being implicated by the failure of the Shanghae Yuen Fung Yun, this guild yesterday received instructions from high authorities that large sums of money' have been advanced from the Government fund and deposited with the different banks of this guild in order to effect a free circulation in the market. This guild has passed a resolution that for all exchanges, receipts, and payments in the banks of this guild, Canton Government notes shall be used for the convenience of all concerned. At present the Canton market is as peaceful as ever.
Anyone who wishes to obtain any cash money for his use may apply to any one of the banks of this guild for exchange of same at his own choice. This is a special notice for general information.
Notified by the Chung Shun Tong, guild of native banks, at Kwongchow. Dated the 13th day, 9th moon, 2nd of Suen Tung.
year
Official Notification.
Chan, provincial treasurer of Kwangtung province, in the matter of issuing a notification for general information. Whereas the notes of the three denominations, viz., 10 dollars, 5 dollars, and 1 dollar, at 7 maces and 2 candareens to a dollar, or at par with the subsidiary coins on exchange, which are issued by the Canton Govern- ment Bank, and on the back of which are printed all the conditions under which they are to be used as a currency, have been hitherto accepted and used with confidence by
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all people; whereas owing to the Yuen Fung Yun Bank having suspended payments, some law-defying bad characters have recently invented stories saying that the Government Bank has been affected by the Yuen Fung Yun's failure, thus befooling the ignorant people and making profits out of them by collecting the Canton Government notes at a discount of 10 or 20 per cent. from them and obtaining the full value on exchanging them from the Government Bank, and some of these bad characters even refuse to accept these notes on purpose; whereas these people do not know that the Government Bank is a public establishment, is quite different from the Yuen Fung Yun, which is a merchant's firm, and which has no connection whatever with the Government; and whereas all canning traders and wily merchants, who for the sake of secking their own profits spoil the interests of the whole community by fabricating rumours and unfounded stories to deceive them should be arrested, prosecuted, and punished so as to remove the doubts of all people; it is proper that a notification be issued for general information besides giving instructions to all local officials for their arrest.
Wherefore by virtue of this notification all classes of people in the whole province are enjoined to take notice that all these Government notes in dollars of 7 maces and 2 candareens each, for which there is a sufficient amount of hard money kept in reserve, are just as good as cash money, and are allowed to be used in parments of all Government funds, and if any one dare make a discount on them or refuse to accept them when presented for payment, he is liable to be prosecuted and severely punished.
Enclosure 4 in No. 1.
Extract from the "Gazette" of July 29, 1909.
Provisional Regulations issued by the Ministry of Finance, with the Imperial Sanction, for controlling the Issue of Chinese Bunk Notes. (Translation.)
1. THE notes affected by these regulations are bank notes, whether printed or in writing, for integral sums, containing neither the name of the payee, nor the date, nor place of payment, i.e., currency notes.
2. Notes in writing which include fractional amounts or which bear the name of payee and the date and place of payment, i.c., cheques and drafts, do not come under these regulations.
3. Before any bank is allowed to issue currency notes, five substantial guarantors must be obtained in the shape of other banks, who will be bound to make good the value of the notes in the event of any loss. But officially-established banks are not thus restricted.
4. Cash shops with sign boards, which issue cash notes, as well as other sorts of notes, are allowed temporarily to continue as before issuing notes, provided they can obtain five reliable mercantile firms to guarantee in case of loss to make good the value of the notes issued. But such cash shops, in addition to sending in reports to the local officials for transmission to the board, as required by the rules of the exchange bureau, must obey the new regulations as regards all matters affecting the issue of notes.
5. All banks at present issuing bank notes, and not registered, shall, within six months from the date of the receipt of the despatch, at once take steps to collect the capital, and must apply to the local authorities for registration at the board. Alter the expiration of the time limit, the banks which have not thus applied for registration will be compelled to withdraw all their notes from circulation within a stated period, and will be fined by the local officials in accordance with regulation No. 18.
6. All firms other than banks now issuing bank notes must gradually call in their whole issue by the end of the 5th moon of 1910. Those firms who have been unable to call in their whole issue within the time limit are allowed to establish banks separately from their business, and to register such banks in accordance with the regulations.
7. No bank or firm carrying on a banking business, whether official or mercantile, opened after the publication of these regulations, shall issue bank notes.
8. After the publication of these regulations those banks permitted to issue notes must not let their issue exceed the amount of notes at present în circulation.
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