T
42
་་
*If these exchange operations were put through direct with
"the public by the Government of Hongkong, they would
"interfere with the legitimate business, and be regarded *as an encroachment upon the rights of the Exchange Banks,
"besides constituting a danger, in consequence of their
"effect upon rates, which could not be anticipated or
"guarded against.
So far as regards the probable effect upon our own
"Note Issue, we would be quite ready to consider any
"
-
*proposals of Government for us to withdraw it gradually
"in favour of their Issue. No doubt there would be certain
"disadvantages to us by withdrawing, which we need not
"specify, but we do not consider these of sufficient
"importance to prevent us from rendering the Government
*all the assistance in our power to make the proposed
*scheme successful.
❤ The Straits Currency being on a fixed ha sis and the "coinage of the Straits Dollar being absolutely within
"the control of the Straits Government the latter have now "the opportunity of making their note issue more or less "self supporting.
"The Hongkong Government are quite differently situated "and have to deal with a currency on a silver basis, and
*the gold prius of silver is liable to continuous fluat-
"uations. Over the minting of the dollars the Government "have no control and derive no profit therefrom.
.
*
In going from an unfixed to a fixed Exchange the *Straits Settlements Government incurred a heavy loss
"in connection with the demonitization of the then existing "silver Currency, and also sustained further loss by depre- "ciation of their gold securities held as reserve against
"their Note Issue."
On receipt of this letter on 11th. ultimo, our Hongkong Manager
advised us that he had written to the Hongkong Government as
catisen att
mt atstat
follows:-
No comments yet.
Private notes are available after approval.