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right of Mote-Issue to two only of the British Banks who thereby in effect levy a tax on all the financial interests in the Colony from the Government itself down to the smallest trade aman.
In my last advices from Hongkong I find the difference in current value between the legal tender coin of the Colony and the Notes of the Banks enjoying the right of issue had risen to 3 in favour of the latter. I urge there cannot in justice be a denial on the grounds laid down in the letter to myself from the Under Secretary of
state for the Colonies dated 23rd June 1899
a copy of which I recently forwarded to you, of similar privileges of Note-issue to The Mercantile Bank of India, Ld., and 1 believe that this extension of the Note Issue would of itself substantially reduce, if not altogether destroy, the anomalous premium already referred
to.
As an alternative I have already urged the assumption by the Government of the Colony of Hongkong of the responsibilities of the paper currency and on this point the views of the Government of Hongkong might be sought by Their Lordships.
I am aware that the question of the bestowal of Note-issue privileges upon the Mercantile Bank of India, Ltd., is primarily one for the consideration of the Colonial Government, and my reason for troubling Their Lordships in the matter is that I understand that certain rules have been laid down by, or on the advice of, Their Lordships for guidance in all decisions in such cases. rules have been, or are being, waived in the renewal of privileges to the Banks at present enjoying the right of issue, and it is but right that the Bank I have the honour to represent should receive similar consideration.
I am, Sir,
Your obedient Servant,
(Signed) fas(ampbell
Such
Chief Manager.
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