aganist the Bank's Note issue,
lee on 20P.
2839/881
ariv
draft to Treasur
on 14480/89, 18420/89, 13224/91
16157/91
By Ord. 21 of 1882 there is unlimited liability
in respect
of the Bank's note issues, and also the Bank is compelled to keep Cash at each of its Establishments equal to one-third of the Notes issued from such Establishment.
The proposal in present letter is that they should keep one-half of the cash to the extent of instead of one-third, & that we should then release the Securities we hold.
This arrangement would have some advantages for the Noteholder (as compared with the present arrangement) and in combination with the unlimited liability might I think be accepted, as sufficient safeguard.
I Recommend the proposal to the favorable consideration of the Treasury observing that if it is adopted Ord. 21 of 1882 had better be amended by substituting one-half for one-third in s. XIII.
If we do not accept this proposal, W. Jackson who called the other day intimated that the Bank might probably have to withdraw their note circulation, in which case this Government & perhaps the Straits Govt might consider the question of a State issue; an undesirable solution of the question?
14.9.25/h
Im Farfield.
29 July
The present arrangement is undoubtedly onerous for the Bank and in time of pressure could not serve any useful purpose. I cannot see what justification there was for requiring the Bank to deposit Securities against its Authorized circulation and not against its actual note issue and it is in this view...
aganist the Bank's Note issue,
lee on 20P.
2839/881
ariv
draft to Treasur
on 14480/89, 18420/89, 13224/91
16157/91
By Ord. 21 of 1882 there is unlunited liabilit
in respect
of the Bank's note issues, and also the Bank is compelled to keep Com at each of its Establishments com & bullim equal of the Notes issued from such
Establishment..
to one
third
The proposal tax in present letter is that they should keep
me half of me cash to the extent of instead of me third, & that we should then release the Securities
hold. which we
This arrangement wood would peakaporbe have some advantages for the Noteholder (as compared with the present arrangement) and in combination with the unlimited liabilig might I think be accepted,
Ола
sufficient safeguard.
? Recommend the proposal to the favorable comes of the Treasury
observing
observing that if it is adopted
Ord. 21 of 1882 had better be 516 amended by substituting
for
are
third in s. XIII.
[2
one
e half.
we do not accept this proposal, W. Jackson who called the other day intimated that thin Bank might probably have to
withdraw then note circulation, in which case this Haughing & perhaps the Straits fu Int might consider the question of not altogether
State issue
;
an undesirable solution of the question? I
14.9.25/h
Im Farfield.
灼
29 July
The present anmugement is undoubtedly
An averous Que.
- for the Bank and in time
of pressure could not farve Avery Elarter a conkable are. I cannot see colent persification there was
for requiring the Bank to deposit
Lecurities against
its Authricted wokends
is
of its actual letto issue and it in this while
No comments yet.
Private notes are available after approval.