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23
The P. & O. Banking Corporation Limited,
117-122, Leadenhall Street,
London, E.C.3.
29th March 1927.
My dear Ezechiel,
You will remember my mentioning to you the matter of the premium which now obtains in Hong Kong on Bank Notes as compared with Silver Currency, and I wonder if you could advise me what would be the best way to proceed in order to get this matter
ventilated.
Our Inspector wrote to the Colonial Treasury at Hong Kong some little time ago on the subject and received a reply, of which I enclose a copy.
So that the exact effect of the present position may be at once clear I may sum up things as they are to-day in the following manner. Bank Notes in Hong Kong are over-valued by 13% as compared with the value of the silver contents of the British Dollar. Although a tender of British Silver Dollars in fulfilment of a contract cannot be disputed at Law, the commercial convention of the place requires settlements to be made in Bank Notes. Further, I understand that there is no supply of Silver Dollars
> although arrangements are available for the 'loaning of Silver Dollars in London and Bombay.
Comm
The position is quite effectively set out in our
Inspector's/
P.H.Ezechiel Esq.,C.M.G.