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FEGE 22 JUL 12
Report of the Finance Committee of the Legislative
Council on the Correspondence presented to the
Council by command of H.E. the Governor
on the subject of the issue of
One Dollar Notes.
The Finance Committee have carefully considered
the whole question of the issue of One Dollar Notes in Hong
Kong, and have read all the correspondence connected there-
with. The Committee have also endeavoured to elicit all
the information to be gathered upon the subject, and beg
to report as follows.
2.
A more extended issue of One Dollar Notes is most
desirable for the convenience of the community, if not
absolutely necessary. The Committeo consider that the
circulation would never exceed $400,000 to $500,000, and
that it would be confined to Hongkong, Canton and Macao.
The Committee understand that notes command no extensive
circulation at the coast ports.
3. The Committee consider the issue of One Dollar
Notes by the Goverment unadvisable under the conditions
laid down by the Imperial Treasury, as the local Government
could not recoup any portion of the considerable expense of
initiating and carrying on a note circulation, and, in view
of the serious demands on the Revenue of the Colony caused
by the extensive public works in progress, the Committee
think it undesirable that any permanent addition to expend-
iture should at present be made. Under these circumstances
it may be found practicable to substitute for the plan of
a Government issue a scheme submitted by the Directors of
the Hongkong and Shanghai Banking Corporation.
4. It would never be possible, in case of a Govern-
ment