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the most untoward consequences might have arisen and been attended with disastrous results.
European Banks in the Colony who do not issue Notes repeatedly insisted in respect of cheques upon us on receiving payment in paper Notes and not in Silver. Of the latter we had at all times an abundant supply. Whenever the Notes of the Hong Kong Bank came into our possession we continuously paid same away, and before paying out our own Notes we from time to time endeavoured to obtain from the Hong Kong Bank their own Notes in exchange for Silver. Their inability to meet our applications was due to the demand upon them for Notes being in excess of their supply of paper money. Sir Thomas Jackson has informed us that in consequence of their limited supply they were forced to pay out our Notes when they had them. He has however assured us that steps were at once taken to guard against a like occurrence again arising and that their supply of paper money in future will be equal to meet the legitimate requirements of the increasing trade and commerce of the Colony.
As mentioned in our letter of 21st May 1898 our Note limit here was fixed at the suggestion of the Bank and for the convenience of its customers. The average of our daily issue for this month up to date is $2,876,419 or $123,581 less than the limit, and which makes our average circulation from 1st ultimo to date $2,992,086.
4
The maximum of Notes which this Bank is allowed to issue at all points is $8,000,000 which has not been exceeded.
I am &c.
(Signed.) T.H.Whitehead,
Manager.
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the most untoward consequences might have arisen and been at-
tended with disastrous results.
European Banks in the Colony who do not
issue Notes repeatedly insisted in respect of cheques upon us on receiving payment in paper Notes and not in Silver. Of the latter we had at all times an abundant supply. Whenever the Notes of the HongKong Bank came into our possession we con- tinuously paid same away, and before paying out our own Notes we from time to time endeavoured to obtain from the HongKong Bank their own Notes in exchange for Silver. Their inability to meet our applications was due to the demand upon them for Notes being in excess of their supply of paper money. Sir Thomas Jackson has informed us that in consequence of their limited supply they were forced to pay out our Notes when they had them. He has however assured us that steps were at once taken to guard against a like occurrence again arising and that their supply of paper money in future will be equal to meet the ligiţi- mate requirements of the increasing trade and commerce of the Colony.
As mentioned in our letter of 21st. May
1898 our Note limit here was fixed at the suggestion of the Bank and for the convenience of its customers. The average of our daily issue for this month up to date is $2,876,419 or $123,581. less than the limit, and which makes our average circulation from 1st. ultimo to date $2,992,086.
4
The maximum of Notes which this Bank is allowed to issue át áll points is $8,000,000 which has not
been exceeded.
I am &c.
(Signed.) T.H.Whitehead,
Manager.
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