CO129-218 - Administrator Marsh Governor Sir Bowen & Others - 1884 [11-12] — Page 379

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to other Banks in the Colony.

the

/

privilege would be extended to them also.

If this is not the meaning

of

the

Government of stong Kong, their proposal

must be quashed at once.

The proposal to create a special reserve

and to place it in the custody of the Treasurer would impose on the Colonial

Government a new and dangerous responsibility.

It would be their duty to see that

5

The difficulty of enforcing the limit

would be increased in the case

of a

Bank

like the Hong Kong and Shanghae Bank

which

Carrus on business

over

a

very

large area

outside

of

the

Colony.

Again the notes of the Bank would be

of

two classes, the one secured by

a reserve

the other

only

secured by general enactment.

The distinction is too

fine for ordinary note

holders to understand, and wild practically

the

not be understood.

amount

of

orie

dollar notes issued

by

the

Bank does not exceed the reserve. My Lords

do not see how this duty could be discharged.

One thing is clear to them viz:- that the

Government would be held responsible for

any deficiency and that the Taxpayer of

the Colony would have to make it good.

The

It appears to my Lords further

difficult questions may ance

that

as to liability

of the general assets to make good a deficiency.

in

the

reserve.

In fact the plan of the special reserve

is ingeniously contrived to secure.

maximum