CO129-315 - Public Offices & Others - 1902 — Page 57

I

Chartered Bank of India Australia and China,

To the Lords Commissioners

of His Majesty's Treasury,

Whitehall,S..

London 1st May 1902.

C. O.

18867

RECR

56

Lords,

Rd 13 MAY 02)

In the personal interview which Mr.Gayther had with Sir Edward

T.Hamilton on the afternoon of Monday last,he explained fully the

subject matter of this letter, which we now deal with officially.

Your Lordships are no doubt aware that by ordinances of the

Hongsong Legislative Council,o.1 of 1899, No.17 of 1899 and No.19 of

1900, of which we enclose copies, the Hongkong & Shanghai Banking

Corporation was empowered to issue notes in excess of its paid-up

capital, on condition that there shall have been specially deposited

and shall be kept in the custody of the Colonial Secretary and the

Colonial Treasurer for the time being, an amount of coin or bullion or

ocin and bullion, equal to the whole value of such excess issue for the

time being actually in circulation, to be held by the said Colonial

Senretary and Colonial Treasure- exclusively for the redemption of

suh bills and notes wherever the same may have been issued.

>

The general public in Hongkong, European and Chinese alike, object

to receive payments of even moderate amounts in cash, the reason no

Joust being due to the unwieldy nature of the silver currency. In conse-

quaBce of this the demand for bank-notes has increased to such an

text that, especially during the time of the Chinese New Year, great eifluntly is experienced by the Fanager of the Hongkong Branch of this Bank, in meeting the requirements of his customers. The limit for the note circulation at that Branch was recently increased t

$3,300,000