Sir,
Enclosure
178
Head Quarters, China Cousand,
REC
Hongkong, 9th January, 1915.
10874
REGE 8 MAR 15
As a Member of the Executive Council of this Colony
I crave Your Excellency's permission to make the following
remarks on the currency question.
2. For some time past, owing partly no doubt to the
dislocation of business due to the war and partly to other
causes, the silver dollar, the official and legal tender of
this Colony has ceased to be the monetary standard.
Its place
-
the Hong
is taken by the bank notes of three private Banks
Kong & Shanghai, the Chartered, and the Mercantile. Shopkeeper:
refuse to accept silver dollars in payment of accounts
even o
small ones – except at a high rate of discount which has gone
up to as much as 11 per cent. Banks will not open an account
paid in in silver dollars without deducting this discount,
unless the depositor agrees to take cash for all his cheques
in silver dollars. Similarly they will not give drafts for
remittances at the exchange rate of the day except on the same
teras.
-
3. As Your Excellency is aware, I have brought this
question up in Council more than once and have urged that
legislation should be arranged for to equalise the value of the
It seemed silver dollar and the bank note a private token.
to me possible to bring in a short Ordinance making it illegal
and punishable by fine for anyone to pay or receive more than
ita face value for bank notes. This measure would no doubt
be drastic, but the times are exceptional and the occasion