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Hongkong & Thunghai Wkg Csorpn. London.
465
ay of telegram from Mr.N.J.Stabb,o.B.E., Hongkong, to Sir Charles Addis lon. (per Colonial office) September 10th, 1918. (Received 21st.)
Referring to your telegram 14th through Secretary of State for the Colonies we do not consider our present stock of silver dollare by any means too large a percentage of note circulation and other demand liabilities and under no circumstances would we be justified in shipping away coin from the Colony at present time.
You overlook the fact that our stock represents practically the whole metallic reserve on which the trade of Hongkong and South China is conducted and any reduction such as suggested would have far reaching and disastrous results to Hongkong Bank, the Colony of
Hongkong, and South China generally.
The high status of Hongkong Bank notes is due to adequate re-
serve being maintained and any depletion in the stock of dollars
would create uneasiness amongst Chinese tending to disturb confid-
ence and seriously affect credits of the notes, There is absolute-
ly no justification for the idea that there is a surplus stock of
silver dollars in this Colony which could be shipped away with
safety. The Hongkong Government strongly support our views and
they would not be prepared to issue an export permit in the present
case. China requires to import silver in part adjustment of
balance of trade with gold countries and shipments of coin from hem
to Shanghai would simply mean that a corresponding mount of the
balance of trade would have to be adjusted between Hongkong and
gold countries or in other words transferring the difficulties of
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