CO129-265 - Public Offices & Others - 1894 — Page 105

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Strait They are communicating with you separately, that that

Bank is only issuing about half the maximum amount of notes which it is proposed to authorise it to issue; and that accordingly there seems to be no reason to apprehend any deficiency in the local circulation of Bank Notes in the Colony; so that the motive will disappear which now prompts the suggestion of a limited State issue in Hong Kong, side by side with the Banks' issues. Whether the circumstances of the Colony favour the substitution of a State issue for all private issues, is a question which the Secretary of State is alone qualified to decide.

100

As regards private issues hereafter in the Colony, My Lords concur in the proposal to prohibit by local legislation all fresh note-issues which have not been sanctioned by the Secretary of State as being secured. They note however that the Secretary of State inclines to consider security up to of the issue as adequate; whereas in the letter of/(13364/94) Their Lordships

the 21'

A

proposed to require security up to 100%,together with a

•

umall bro- margin. This point may perhaps best be considered at the Leeds and suppested conference between the Colonial Office and the

is 100 per cas

I am,

Sir,

Your obedient servant,

Enthamillio