CO129-284 - Acting Governor Major Gen Black - 1898 [7-8] — Page 27

halleled is

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This sum of $46,158 we are ready to hand over, or if required $83,333.33 being one third of $250,000.

We regret to be informed by our London Office

that the Note issue of the Straits Government will probably not be commenced before the end of this year which is most

unfortunate as the present limits of the note issuing Banks

in Singapore, Penang, and Hong-Kong have become quite inadequate to the steadily growing requirements of the expanding and

normal trade of these Colonies. The inadequate supply of paper

money in Hong-Kong has caused and is still causing the most

grave difficulties. Europeans and Chinese are suffering from

the injurious consequences of contraction of the circulating

medium.Legitimate business has been and is being hampered and

trade is being throttled. The market for imported goods, for

merchandise, for stocks, &c., are practically at a stand still,

prices are more or less nominal and lower all round than they

would be if there was a sufficiency of paper currency to carry

on and finance normal trade requirements. The Payees of che-

ques, drafts, and telegraphic transfers positively refuse to

receive payment thereof in Silver dollars and we fear that if

the European Banks declined to pay in notes and that if some

relief from the present intolerable pass cannot be obtained

the severe monetary crisis may develop into panic accompanied

by the usual untoward consequences.

I am,&c.,

(sd.) T.H. WHITEHEAD,

Manager.