CO129-212 - Governor Sir Bowen - 1883 [10-11] — Page 51

50

cash on demand all their notes in

the

circulation. Factors copy of last return of notes in circulation and of specie held in reserve

by

155

different Banks. The subject of the

Extent to which Banks should be allowed to write paper currency in this Colony appears to require careful looking into. It is a question on which I am unable to express any opinion at present as though not yet been able to ascertain what conditions were

attached to the privileges beyond that of keeping a specie reserve of at least one third of the amount of issues. This condition has, I believe,

always

the

Enclosure 1

Enclosure 2

always been observed. But if the Oriental

Bank can issue, at each of its Agencies notes

to the extent of one third of its paid up

Capital, such issues might in this

Colony be very considerably in excess of

what it now is

7. I Enclose for Your Lordship's

information a copy of a report from the

Treasurer

relating

to the matters dealt

with in this despatch.

I have the honour to be

my

Lord,

Your Lordship's most obedient humble servant,

Administering the Government.

#