5
subject has been awaiting consideration by the Financial Adviser since September, 1927. Now that a new Financial Adviser has been appointed perhaps he will consider it.
(Sgd.) R. V.Vernon
15. 11. 29.
The Financial Adviser will not be available
for two months. Get by mail a report from Hong Kong
on the subject.
(Intd.) G.G.
16. 11. 29.
at once.
28/4
3.
To Gov. 312.
cons.
(W/c 1 and 2)
25/11/29.
Sir Newton Stabb called and saw Mr. Gent
and me yesterday. He told us that the "decision"
to bring to an end the "Commercial Convention"
which required the discharge of liabilities in notes and not in silver dollars was made by the
banks on representations from the Colonial
Government who considered that the maintenance
of the convention would be harmful to the trade
and prosperity of the Colony. He said that
silver had been brought to the Mints in London. and Bombay to be coined into silver dollars by foreign banks and not, he thought, by any British firms. He thought that there was a serious danger of Hong Kong being flooded with silver dollars for which there was no accommoda-
tion and no outlet. The peak period of arrivals would be in April and May. One method of dealing with the situation would be to control by
licences