CO129-253 - Public Offices & Others - 1891 — Page 40

In the reply to this Letter the following Number should be quoted.

TREASURY CHAMBERS,

0964

91

13224

37

Sir,

// August 1891.

C.O

16157

Pro 12 400 91, Foreign

I have laid before the Lords Commissioners of Her Majesty's Treasury Mr Meade's letter of the 16th ultimo, with its enclosed copy of a letter from the Hong Kong and Shanghai Banking Corporation representing that the paid up capital of the Bank has recently been increased from $7,500,000 to $10,000,000, and urging that the Security for the Note Issue, which is fixed at one-third of the paid up capital or maximum issue, should not be increased beyond the present amount,viz:- $2,500,000 until the actual Note Issue exceeds $7,500,000

In reply, I am to request you to state to Lord Knutsford that My Lords, after full consideration of the Bank's representations, feel constrained to refuse Their

assent to the proposal. It was not without some hesita-

tion that Their Lordships consented to reduce the Security from the whole to only one-third of the Issue(as limited by the capital); and, apart from other considerations, the complications, and the difficulty of securing observance,

of the proposed new ruls are; in the opinion of this Board, reasons against any further concession.

Accordingly, additional securities to the amount of $833,333 will have to be lodged in the hands of the

Trustees of the Reserve Fund

•

I am,Sir,

Ader Secretary of State

Colonial Office

Your obedient servant

Allwelby