+
757
the Government of Hong Kong, and They think it desirable
to set out the position in some detail.
The authorised note issue of the Chartered Bank
before the grant of of India, Australia and China W88, the Tenth Supplemental Charter, limited to $8,000,000, a figure fixed in 1894 on the basis of the then paid up ospital of the Bank, and one not substantially in excess of the limit imposed by the original Charter of the Bank in 1853. Against this issue the Bank was required to deposit in London coin or securities to the extent of
In 1902, following one-third of the authorised maximum. the grant of a similar privilege to the Hong Kong and Shanghai Banking Corporation, the Chartered Bank was empowered to make an excess issue of notes on condition that coin or bullion to the full amount of the 6x0898 (wherever issued) was deposited with the Colonial
The paid Secretary and Colonial Treasurer in Hong Kong. up capital of the Chartered Bank bas since that date been increased to £3,000,000, and upon application being made to Them in 1921 for an increase in the ordinary note issue to that figure, My Lorde saw no reason to dissent from the proposal provided that securities to the full value of the issue beyond $8,000,000 were deposited, and Sir H.J.Read's letter of the 10th August last was taken as endorsing
Then
Their/ 3976
Their view.
Before the grant of the Supplemental Charter
embodying this decision, the position of the Hong Kong
and Shanghai Banking Corporation appears to My Lords to
have been, by comparison, unduly favourable. Under the
Ordinance dated 31st March, 1922 the Corporation was
entitled to issue notes up to $20,000,000 upon the deposit
in London of coin or securities equal to two-thirds of
the authorised issue, and to issue notes in excess of the
authorised issue upon the deposit with the Colonial
Secretary and Colonial Treasurer of Hong Kong of coin or
bullion to the whole value of such ex0988. Provision
was also made that portions of the security last referred
to could, with the approval of the Governor, be kept at
places outside the Colony.
The result is therefore that up to an issue of $20,000,000, beyond which the Chartered Bank do not at
present propose to issue notes, the security deposited is $14,666,666 by the Chartered Bank and $13,333,333 by
the Hong Kong and Shanghai Banking Corporation, and in
both cases the securities are held in London.
My Lorde cannot therefore regard the representations
of the Hong Kong and Shanghai Banking Corporation as well
founded. The Corporation are, as are the Chartered Bank,
entitled/