13
Kr. Vernon
Sir John Campbell will be arriving next week. I am not quite chan what exact problem is to be u. -ferred to him, but perhaps it
she be
whether the Hory Kiny Goof can usefully take any
step to alter
it's currency system, having regard to the facts that it is a purely silver standard, that the price
of silver is now lower than it has ever be.
-4 that there is
&
reason to suppose that it
will
for a
a
recover appreciably
long time, if ever.
G.L.M. Clauson
13/2/30
Sir J. Campbell,
I refer these papers to you for
your consideration.
I do not think that we are
The
in a position to put a particular question to
you as precisely as Mr. Clauson suggests.
general situation with regard to Hong Kong
currency is roughly as follows. There is no
Government note issue, but the notes are issued
Mee
A
by the principal banks. The British dollar is
legal tender, but until recently there has been
what has been described as a "Commercial
Convention" under which obligations could only
be met in notes, and not in silver dollars.
This so-called "Convention" appears to have.
been an agreement between the banks, but one of
the bankers has told us that the applications
issued by Government for payment of taxes and
other debts due to Government contained a
statement that payment must be made in notes
a