COPY.
Enclosure 1.
Memorandum on the Financial Position in Kwangtung
Province.
143
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Apart from the foreign Bank Notes, there are at present
in circulation in Kwangtung three difference kinds of notes, all
of which are recognised by the present local Government and pur-
-port to be redeemable on demand in Provincial subsidiary coin
i.e. 20 cent pieces. Of these three issues, two are notes issued
by the old Government now stamped with the new local Republican
Government's "Chop" of recognition.
The third kind are the new notes recently issued by the
new local Government.
A one dollar note of each issue is attached with the
respective translations of conditions of issue.
Of the two different issues of old Government notes, one
was repayable in Provincial sub coin, the other was a dollar issue, *x*x repayable in Provincial dollars. The latter however was not liked by the market and had practically no circulation.
Before putting these latter notes on the market the new
Government stamped them with a "Chop" as follows:-
"This note is altered to subsidiary coin according to
face value".
On the new notes it will be noticed the conditions of
issue state they are repayable two years after issue this the Government changed before issuing them, by having printed on the
back in red ink the following clause:-
"This note is permitted to be exchanged for Silver
on Demand"
•
The old Government's Note Issue was said to amount to
$10,000,000 but during a "run" that took place it was estimated that 86,000,000 were redeemed Shortly after this "run" Kwang- -tung went over to the Republicans, so the balance of the old issue outstanding at that time was about £4,000,000.
When the new Government came in they decided to have a note issue of their own, mainly for the purpose of raising funds. Having no new notes at the time, they took the old Government's