42
Chapter XV.
BANKING, CURRENCY, WEIGHTS AND MEASURES.
The Colony is well served by banking institutions, including branches of English, American, French, Netherlands, Japanese and Chinese banks. Besides the fourteen banks which are members of the Clearing House, there are several Chinese Banks. Many native Hongs do some banking business. There are no banks which devote themselves especially to agricultural and co-operative banking. The Hong Kong and Shanghai Banking Corporation conducts, in addition to its normal banking activities, the business of the Hong Kong Savings Bank on usual savings bank principles. The credit and repute of the Colony's financial institutions are high and it is satisfactory to know that ample encouragement and support are available to finance any possible demand.
The currency of the Colony, which was formerly based on silver, underwent very important changes at the end of 1935. The unit of currency is the Hong Kong dollar, divided into 100 cents. Until 1935 its exchange value fluctuated with the price of silver; but since the passing of the Currency Ordinance on the 5th of December, 1935, the value of the dollar is controlled by an Exchange Fund, which has power to buy and sell foreign exchange, and has taken over the silver formerly held against their issues by the note-issuing banks, in return for certificates of indebtedness against which the Fund may hold bullion, foreign exchange or approved securities. At the 30th of June, 1939 (the latest date for which figures have been made public) the Fund had issued Certificates of Indebtedness to the value of $192,121,887, which is equivalent to £11,907,554 @ 1/2%, the middle market rate on that day. The total assets of the Fund amounted to £13,226,195.
The legal tender currency of the Colony is now as follows :-
(a) Bank notes, the excess of which over the fiduciary issue of each bank
is now backed by certificates, not by silver as formerly:-
at 31.12.39.
(i) Chartered Bank of India, Australia and China
$25,524,624
(i) Hong Kong & Shanghai Banking Corporation
$195,232,228
$4,843,727
(ii) Mercantile Bank of India
(b) Government $1 notes, of which $6,443,000 were in circulation at the
end of 1939.
(c) 10 cent and 5 cent nickel coins with the security rim.
(d) 1 cent copper coins.
(e) .800 fine silver sub-coin (10 cent and 5 cent pieces, and a few 50 and 20 cent pieces), which has either remained in circulation in the Colony or filters back into it from the mainland of China, is still legal tender in the Colony. Sub-coin is legal tender only up to an amount of $2.00.
The currency situation remained stable during the year.
The weights and measures in use in the Colony are defined in the Schedule to Ordinance No. 2 of 1885. They consist of the standards in the United Kingdom and of the following Chinese Weights and Measures:-
1 fan (candareen)
=
0.0133 ounces avoirdupois.
Page 45
Page 46
42
Chapter XV.
BANKING, CURRENCY, WEIGHTS AND MEASURES.
The Colony is well served by banking institutions, including branches of English, American, French, Netherlands, Japanese and Chinese banks. Besides the fourteen banks which are members of the Clearing House, there are several Chinese Banks. Many native Hongs do some banking business. There are no banks which devote themselves especially to agricultural and co-operative banking. The Hong Kong and Shanghai Banking Corporation conducts, in addition to its normal banking activities, the business of the Hong Kong Savings Bank on usual savings bank principles. The credit and repute of the Colony's financial institutions are high and it is satisfactory to know that ample encouragement and support are available to finance any possible demand.
The currency of the Colony, which was formerly based on silver, underwent very important changes at the end of 1935. The unit of currency is the Hong Kong dollar, divided into 100 cents. Until 1935 its exchange value fluctuated with the price of silver; but since the passing of the Currency Ordinance on the 5th of December, 1935, the value of the dollar is controlled by an Exchange Fund, which has power to buy and sell foreign exchange, and has taken over the silver formerly held against their issues by the note-issuing banks, in return for certificates of indebtedness against which the Fund may hold bullion, foreign exchange or approved. securities. At the 30th of June, 1939 (the latest date for which figures have been made public) the Fund had issued Certificates of Indebtedness to the value of $192,121,887, which is equivalent to £11,907,554 @ 1/2%, the middle market rate on that day. The total assets of the Fund amounted to £13,226,195.
The legal tender currency of the Colony is now as follows :-
(a) Bank notes, the excess of which over the fiduciary issue of each bank
is now backed by certificates, not by silver as formerly:-
at 31.12.39.
(i) Chartered Bank of India, Australia and China
$25,524,624
(i) Hong Kong & Shanghai Banking Corporation
$195,232,228
$4,843,727
(ii) Mercantile Bank of India
(b) Government $1 notes, of which $6,443,000 were in circulation at the
end of 1939.
(c) 10 cent and 5 cent nickel coins with the security rim.
(d) 1 cent copper coins.
(e) .800 fine silver sub-coin (10 cent and 5 cent pieces, and a few 50 and 20 cent pieces), which has either remained in circulation in the Colony or filters back into it from the mainland of China, is still legal tender in the Colony. Sub-coin is legal tender only up to an amount of $2.00.
The currency situation remained stable during the year.
The weights and measures in use in the Colony are defined in the Schedule to Ordinance No. 2 of 1885. They consist of the standards in the United Kingdom and of the following Chinese Weights and Measures:-
1 fan (candareen)
=
0.0133 ounces avoirdupois.
Page 45Page 46
No comments yet.
Private notes are available after approval.