CO129-318 - Governor Sir Blake - 1903 [7-10] — Page 79

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of the Banks.

1 am forwarding a copy of your desp.

and its encl. with a copy of this reply to

the 1.0., and am requesting that a reference

may be made to the Government of India, with

a view to obtaining a report on the probable

capacity of the Bombay Hintfto cope with

demands for British dollars in the future,

having regard to the requirements for rupees

ano $.5. dollars. I will inform you of the

result of this reference. I au disposed to

think that the question of re-establishing

a Mint at Hong Kong should not be re-considered

until it has been found by experience that

the Indian Mints cannot turn out a sufficient

supply of British dollars.

As regards the rate of seigniorage wnion

it is proposed to charge in the fuaure it ap-

pears to me that a charge of 2 per cent is

fair and reasonable, see par. of the letter

from the Covt. of India quoted above) and

I do not feel able to make any representation

to the 1.0. on this head.

I am c.