Has team done in the Priscul case? We can easily verify it by getting the articles of association.
It is entirely a question of policy whether a Colonial government should issue; and this may be considered under two heads, which you suggested in discussing 12014.
(a) Is it wise to give facilities for note issue which may become an embarrassment as in the case of the Oriental Bank failure?
(b) Is it fair to the Hongkong & Shanghai Bank, which is allowed a right of issue under certain restrictions, to admit the concurrent authority of another bank without restrictions?
Taking the latter head alone, it seems to be clear that you cannot give special facilities to the new bank. And adopting the recognised policy of the Dept. in regard to note issues, there is no doubt left.
Either the Govt. may simply decline to receive the notes, and this, as you point out, will effectively kill them; or take possession and prohibit note issue within the Colony: but in their case the notes issued prior to such prohibiting law, or their equivalent from time to time, may still be left standing in circulation: this is the English practice.
If, however, it is found to meet the bank's motionably there is always the line to take that the issue will be reserved at the Treasury if placed and supported by securities in the footing of the Hongkong & Shanghai Bank and not Mercantile; and if the limit of $500,000 is made a strict condition, great harm may be avoided.
The comparison of notes to cheques by the Manager is "fallacious," and the suggestion as to inspector of issuing banks is taboo.
But the case to the 25 July dressing mint the condition of forbidding issue of notes without the notification of the S. f. Note Security.
has team done in the priscul case _[ we can easily verify it by gelling the articles of
association J.
It is entusty a questem of policy Watter
a
Colmal
goot
rotis ; and thes
should nesire Merse.
may M considrad under
two hands, which you suggested in discussing
12014.
thy is it wish to give facilikes for ante issue which may become
as in the cas
an
Onental
incbarrassment
of the Oncabal Bank failure?
(b) is it fair to the Strugtongie Bank which is allowed a right of issue under
critain restrictions to admit the concurrent authenbank without restrictins ?
issut
of another
Taking the latter hear alme it seems to
k clean that
you
canest
five special facilities to the new bank - And adopting "The recognind policy of the Dept. ni regad to note issues there is no doubt left.
Either the Gov! may simply Recline to
receive the roles _ and this, as to Bransta
pouts out _ will affectually Kill them. or take possis & prohibits note.issue
A
424
within the Colony : but in their care d
mniafine
the notes issued
pris to such
forbilitiny law, or then Equivalent
p
time to time, maste
From time
still be left station in circulation : this is the English preaker. If hourage it is found to meet the bank motionbly there is alyti
afally:
the live to take is that
bo tomanday tach the issue will be Beerved at the Treasury if placed
supported by Shaid in the footing of the Stanghongte.
proved securitas.
Ac Bank and not Meuric- und if the limit f#50000 is made
great harme case
a
acrut
condition
Ho
The comparison of notes t-cheques by the Manager is "fallacions _ and the suggestion as to inspector of
1.
inding suier taboow.
CH.
riserva,
But the case to the 25 July
dreasing mint the
of fortielding
allematice kadriname
ime of noter without the; In nation of the S. f Note. Secanty
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