CO129-218 - Administrator Marsh Governor Sir Bowen & Others - 1884 [11-12] — Page 378

375

it's note issue

secondly,

As

would in practice be enforced,

to the difference, if any such

difference exists, between the provisions of the

Hong Kong and Shanghae Bank ordinances,

and the section

of

the Imperial Banking

the

Act of 1879 defining the unlimited liability

of Banks of issue registered under Companies Acts for their note issues; thirdly as to the power of the Stong Kong and Shanghae Bank to create a special reserve

such

04

the

Bank offers for

a dollar note

issue,

and

That

to

the manner in

which

such

X-

power, if thought unobjectionable

general grounds, should be

sanctioned.

072

conferred.

am to encloue

a

copy of

the case

and opinion

in question.

3

My Lords before stating their view

proposal submitted to

of the policy of

the

them will offer

some remarks

upon

the

monopoly of

small notes which the propoval.

would confer upon one Bank, and ales

upon the question of a special reserve. The

proposal as

Q

· formulated undoubtedly confers

monopoly

on the Hong Kong

and

Shanghae Bank. My Lords however are

willing to understand the Government of Hong Kong to mean that the privilege of

dollar note issue should be confined to Banks subject to untimited liability for

their notes. One only

in

the Bankes established

One only of the

Hong Kong, the Hong Kong and

Shanghae Bank, satiefies this condition, but

if

this con

dition should

become applicable.

to

му