CO129-173 - Sir Kennedy - 1876 [1-3] — Page 56

CO129 Colonial Office Hong Kong Records 理藩院香港檔案 All AI Reviewed

Should make the profit that is concerning to the Bank, but the Treasury only suggested the scheme on condition that you abstained from profit.

My objection to the plan was and is that a paper currency of so small a denomination as one dollar is objectionable in itself, and that for Banks already issuing notes of larger denomination, the Govt will either enter into competition with these Banks, or at least undertake the whole circulation & compensate these Banks for the abolition of their privileges.

That these Banks can already issue notes as low as $7 (about $1), that they cannot at present manage to issue up to the full power of circulation, & consequently that there are sufficient facilities for all purposes of legitimate trade.

That the community apparently want these notes as a subsidiary proper substitute for coinage, a function of a paper currency; that this is not as a subsidiary coinage, I don't exactly understand.

Apprehensions: the rate of exchange must fall or rise more or less in accordance with the fall or rise in the gold price of silver; but as long as they make the subsidiary coins of 8/10 fineness and declare their nominal value as if it were 9/10, the difference will always about cover the cost of coinage and exportation, and would probably give a profit except in a very peculiar state of the exchanges.

The only danger to be guarded against is putting the subsidiary coinage into circulation too rapidly; as possibly some day it might flow back to the Colony, & people...

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Should make the profit that is concerning to the Bank, but the Treasury only suggested the scheme on condition that you abstained from profit. My objection to the plan was and is that a paper currency of so small a denomination as one dollar is objectionable in itself, and that for Banks already issuing notes of larger denomination, the Govt will either enter into competition with these Banks, or at least undertake the whole circulation & compensate these Banks for the abolition of their privileges. That these Banks can already issue notes as low as $7 (about $1), that they cannot at present manage to issue up to the full power of circulation, & consequently that there are sufficient facilities for all purposes of legitimate trade. That the community apparently want these notes as a subsidiary proper substitute for coinage, a function of a paper currency; that this is not as a subsidiary coinage, I don't exactly understand. Apprehensions: the rate of exchange must fall or rise more or less in accordance with the fall or rise in the gold price of silver; but as long as they make the subsidiary coins of 8/10 fineness and declare their nominal value as if it were 9/10, the difference will always about cover the cost of coinage and exportation, and would probably give a profit except in a very peculiar state of the exchanges. The only danger to be guarded against is putting the subsidiary coinage into circulation too rapidly; as possibly some day it might flow back to the Colony, & people...
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Should make the profit that i how acerning tothe Bank, but the Ireasury only suggested the scheme on condition that you abstained from profit My objection to the plan was and is that a paper currency of so small a denomination as one dollar 4. pont. ر نے مرتے jomed; is objectionable in itself, by whom and that for 5 Bantes already o isonc notes the of larger dense ination's that the Govt will either enter into Competition with these Bank, or it heast- undertake the whole circulatin & compensate these Banks for th abolition of their privileges. That there Banks can already issue notes as such as 57 (about #1), that they cannot at present manage to Jet-tharnoter issued up to the cir full power of Circulation, & consequently that there cre sufficient facilition for all perpres of legitimate 53 Frade- That the commmity apparently want these notes a, A subsidiary -Me Jroper a substitute for Coinage, function of a paper carrency_ that this is not as bitte subsidiary coinage, I don't exactly understand wird Kenshi, Apprehensions: the rate of Saching must fall or size more orley in accordance with the fall or rize in the gold price of silver; hut- as long as they make the ibridierz Coins of 8/10 to fineness Ideclaré " their nominal value as if it if of 9/1ts the difference will always about cover the cost of coinage tof exportation twould probably give a profit exceper in a very peculiar state of the Exchanges. The only danger to be guarded against is putting the Subsidiary coinage into circulation too rapidly; as possibly some day it might-flow back to the Colony, & people
2026-05-21 07:28:55 · Baseline
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Should make the profit that i how acerning tothe Bank, but the Ireasury only suggested the scheme

on condition that you abstained from profit

My objection to the plan

was and

is that a paper currency of so small a denomination as one dollar 4. pont.

ر نے مرتے

jomed;

is objectionable in itself, by whom and

that for 5 Bantes already

o

isonc notes the of larger dense ination's that the Govt will either enter into Competition with these Bank, or it heast- undertake the whole circulatin & compensate these Banks for th abolition of their privileges. That there Banks can already issue notes as such as 57 (about #1), that

they cannot at present manage to Jet-tharnoter

issued up to the cir full power of

Circulation, & consequently that there

cre

sufficient facilition for all perpres of legitimate

53

Frade-

That the commmity

apparently want these notes a,

A

subsidiary

-Me Jroper

a substitute for Coinage, function of a paper carrency_

that this is not

as bitte subsidiary coinage, I don't exactly understand wird Kenshi, Apprehensions: the rate of Saching must fall or size more orley in accordance with the fall or rize in the gold price of silver; hut- as long as they make the ibridierz Coins of 8/10 to fineness Ideclaré " their nominal value as if it

if of 9/1ts the difference will always about cover the cost of coinage tof exportation twould probably give a profit exceper in a very peculiar state of the Exchanges. The only danger to be guarded against is putting the Subsidiary coinage into circulation too rapidly; as possibly some day it might-flow back to the Colony, & people

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