CO129-303 - Public Offices & Others - 1900 — Page 304

2.

Our Note Circulation in the Straits on

31 May 1899 was - $ 42.50.000

31 Dec. 1899

群

31 Mch..1900

#

33.75.000

-28.75.000

300

showing a steady reduction, although slow.

The Bank's excess note issue mentioned in paragraph 4 amounting to

$80.70.000 on the 23 Jany, last was occasioned by the large temporary

..requirements of this Colony on the approach of the China New Year, and

is of annual occurrence, although this year the demand exceeded all pre-

vious ones.

For your information I may mention that the excess note issue on

31 Dec. 1899 was $26.23.000, 31 Jany 1900 $48.30.000, and on 28 Feby.

$37.32.000.

»

With reference to Mr. Chamberlain's enquiry as to whether the with-

drawal of our note circulation in the Straits will have the effect of

diminishing or removing the necessity for the excess note issue authorized by Hongkong Ordinance No. 17 of 1899 I am of the opinion that even when

the withdrawal of our Straits circulation is completed that we shall still

find the necessity for an excess Note Issue; and I would again impress

upon you that this excess issue is entirely to facilitate the trade of the

Colony, and we wish to avail ourselves of the privilege as little as pos-

sible as it is obviously a direct loss to the Bank having to issue Notes

against an equal deposit of Coin.

Bank Notes are year by year coming much more into favour with the Chinese on the Mainland and we now find the greatest difficulty in getting