ALL COMMUNICATIONS

TO BE ADDRESSED TO THE

OROWN AGENTS FOR THE COLONIES.

THE DATE OF THIS LETTER BEING QUOTED

AND THE FOLLOWING REFERENCE

A/581

TELEGRAMS. "CROWN, LONDON."

TELEPHONE, 7730 VICTORIA.

Sir,

CROWN

AGENTS

FOR

THE

COLONIES

7 WAR OOL. OFE

52821

4, MILLBANK,

WESTMINSTER,

LONDON, S.W. 1.

6th March, 1928.

3009927

Tith reference to our letter of the 11th of March

not 1927, I have the honour to transmit for the information of

28.2.28.

Сорг

CA.

20 MAR 1928

the Secretary of State a valuation of the security held by us

as cover for the note issue of the Mercantile Bank of India

Limited, in Hong Kong, together with a copy of a letter from

the bank stating the face value of the notes in circulation. ɔn

the 31st of December, 1927.

2.

It will be observed that the valuation has been

made on a slightly different basis from that employed in

previous years, and that in the statement showing the amount of

security the bank are required to deposit with us, the

additional 5% over the face value of the notes in circulation.

has been calculated on the face value of the notes not covered

by coin deposited with the local Treasurer, instead of being calculated on the total face value of the notes in circulation.

The amended method appears to be in accordance with Section 4 of Ordinance No. 65 of 1911 end on this basis the valuation

shows an excess of £54,127. 15. 3d over the amount of security required.

The Under-Secretary of State,

Colonial Office.

I have the honour to be,

Sir,

Your obedient Servant,

Was Wichbart

for Crown Agents.

HS

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