I
:
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}
392
2.
I accepted the Chief Manager's offer for the
following reasons:-
(1)
-
Since the discount has been decreasing until it
recently reached 34 3%, it has been suggested by
(2)
(3)
(4)
the Senior Unofficial Member of the Executive Coun-
-cil that the Government should issue a notification
expressing its willingness to redeem at par all
amounts of 10-cent pieces brought to the Treasury.
The drawbacks to this proposal are obvious in view
of the overdraft already existing at the Bank at the
moment.
At present no large amount of subsidiary coin can be
purchased locally. The only means of getting the
coin for the transaction proposed by the Chief Manager
was therefore to take over the Bank Stock,
The Chief Manager further proposed that, if the Go-
-vernment would relieve him of the Bank Stock, he
would then take in subsidiary coin from large public
Companies, such as the Tramway and Ferry Companies,
at a lower rate of discount than the market rate
fixed by the money-changers, thus rendering the mani-
pulation of the market by them less easy. He further
agreed to hand over all or any sums so received from
the public Companies to the Goverment if required
at any time for demonetization, at the rate of dis-
count at which he had purchased the coin from them.
He also expressed his willingness to take over sub-
sidiary coin at par, should the Government desire it,
to the value of a few lacs.
The Chief Manager was of opinion that the taking of £1,000,000 of 10-cent pieces off the market in this
manner would have the immediate effect of reducing
the discount still further and incidentally of meet-
-ing, to a certain extent, the wishes of the persons
referred