CO129-363 - Public Offices & Others - 1909 — Page 439

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Will letters to be aditussed to

"THE CHIEF MANAGER"

438

THE MERCANTILE BANK OF INDIA LIMITED

40. Threadneelle Street.

C 0.

15120

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Race 5 MAY OS

4th May, 1909.

Linden

AL

TELEGRAPHIC ADDRESS.) MADISE, LONDON"

Sir George 1.Murray, G.0.3., 1.8.0.

Permanent Administrative Secretary to the Treasury,

Treasury Chambers,

Whitehall, 8.V.

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I have the honour to acknowledge receipt of your letter of the 21st ultimo informing me that the Lords Commissioners of His Majesty's Treasury have now under consideration the issue of a New Charter to the Chartered Bank of India, Australia, & China, one of the Banks possessing the right of Note issue in Kongkong, and further stating that Their Lordships will be prepared to give their careful con- sideration to any representations which I may think proper to submit to them in writing on the subject of the proposed renewal of the

Charter.

I do not propose to put forward any arguments in opposition to

the claims of the Bank named. It is no part of The Mercantile Bank

of India's case to oppose or interfere in any way with the renewal

of the Charter, and the right of Note Issue of the Chartered Bank

of India, Australia & China. It is manifest that any refusal on

the part of Their Lordships to continue the privilege to that Bank, without making adequate provisions in other directions, would only

aggravate the evil complained of. ly desire, on the contrary, is

so materially to widen, under all necessary safeguards, the

privilege of Bank Note Issue as to destroy the premium value attaching

to the Notes and to remove the unnatural advantage they at present

enjoy over legal tender coin.

The continuance of a monopoly that

is unfair in its operation, and the fostering of conditions that place the legal tender coin of His Majesty's Colonial Government at a disadvantage cannot be the desire of the Supreme Government such conditions being the result of the limitation of the