CO129-284 - Acting Governor Major Gen Black - 1898 [7-8] — Page 81

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ENCLOSURE

2.

COPY.

Sir,

C.0.

80

18538

REP

Like 16 AUG S

Hongkong & Shanghai Banking Corporation.

Hongkong, 11th. July, 1898.

Referring to recent correspondence on the subject

of our Note Issue in Hongkong and the Straits Settlements, the task of keeping within the limit assigned to us, has neen beyond our power of control from the beginning of the present year. Bank

notes have become so popular with the Chinese and they are so

convenient for purposes of transit that they absolutely decline to receive silver in payment of either Cheques, Compradores Orders, Drafts or Telegraphio Transfers, so much so that during the past

six months the exigencies of the position have forced upon us the

necessity of occasionally exceeding our issue in order to avoid

creating a crisis particularly before last China New Year, when

our disbursements were very heavy and the natives insisted upon

receiving notes.

You are aware that the Chartered Bank's circula-

-tion is very limited, and that they experience the same difficulty

that ve do in keeping within their limits so that no relief

can be experienced by means of their notes. The Only other Bank

The Honourable

T. Sercombe Smith,

Acting Colonial Secretary,

Hongkong.

of