OF OURRALCY
9
IN INLO CHIN.....
On the invitation of the Banque de l'Indo Chine,
(in company with Mr. F.P.Cochrane of The Chartered Bank) attended at the office of the Banque de l'Indo China, Paris,
on the 2nd February 1920 when Mr. R.T. de la Chaume, the Manager,
in the presence of ir. Bourcier st.Chaffray, Secretary to the Governor General of Indo China informed me of the proposals in regard to the currency position in Indo China which the French Colonial Government would probably put into operation during the month of February or early in March.
Silver pisstres are rapidly disappearing from circulation and it is proposed to declare the notes of the
Banque de l'Indo Chine inconvertible.
The Banque de l'Indo Chine will be authorised to issue
notes against payamt in Paris in franes at a rate of exchange between piastres and franes to be fixed from time to time by the goverment of Indo China; the initial rate to approximate to that prevailing imediately previous to the day of fixing.
It is hoped that the initial rate of exchange will be
a maximam, but if conditions (e.g. a big rise in the price of
silver, or further heavy depreciation of the frane were
mentioned as possible contingencies) mke it necessary, the Government will raise the rate of exchange for the sale of notes.
The desire is, however, to lower the rate gradually until a level