75
Electric Tramways Company for refusing to accept
Chinese coins which has now been brought to
-
an end only with great difficulty emphasizes
the desirability of prohibition for political
as well as currency reasons, and I am to call
attention in this connexion to the last par.
of the Gov.'s longer Conf. desp. of the 11th
of January.
The modified scheme for a Gort. Note issue
in redemption of H.K.Subsidiary coins, which
the Gov. now puts forward, is one that cannot,
r. Harcourt fears, be accepted. The limitation
of the issue to an amount not exceeding the
deficiency in value of the subsidiary coins
would of itself be unobjectionable
redeemed/
but for the unfortunate circumstance that,
while the issue would be guaranteed by the
revenues and assets of the Colony, and while
it is proposed to make yearly appropriations
from revenue to form a guarantee fund for the
redemption of the notes hereafter, there will
exist no coin reserve against the notes to
ensure their conversion on demand. The provi-
sion of an adequate coin reserve against a
that
Govt. Note issue to ensure all probable demands
for encashment of the notes can be promptly
met is an essential condition of such an issue, and to make this provision it would be neces-