CO129-372 - Public Offices - 1910 — Page 351

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In conclusion, I have the honour to suggest that it would be much more satis- factory if the Ministry of Finance sought the services of an independent expert and took his advice upon this important matter.

I have, &c.

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WILLIAM D. LITTLE, Chairman.

Enclosure 3 in No. 1.

Cash Notes: Reply from Viceroy of Liang Kiang to Inquiries of Provincial Assembly about the Government Banks at Nanking and Soochow

1. AMOUNT issued in cash notes (from establishment of banks) up to end of

Stli moon:

From head office, 190,360 dollars.

From branch office, 1,838,063 dollars.

Total, 2,028,423 dollars.

2. Kinds of cash notes issued :---

By the Nanking Government Bank, 1 dollar, 5 dollars, 10 dollars.

3. Number of Chinese dollar notes as compared to Mexican dollar notes :--

Chinese dollar notes printed, 6,554,700 dollars. Mexican dollar notes printed, 4,437,000 dollars.

Of these have been put in circulation :- Chinese dollar notes, 3,169,700 dollars. Mexican dollar notes, 2,075,000 dollars. There are now getting ready for issue :-- Chinese dollar notes, 3,385,000 dollars, Mexican dollar notes, 2,362,000 dollars.

4. With what character marked :-

There have been already marked notes to a value of 5,244,700 dollars, bearing in all 1,623 characters of 1,000 notes to each character, with the exception of "Chiu," 10-dollar notes, of which 800 were issued, and one-dollar "chen" notes, of which 700 were issued.

5. Limits of issue:---

Question (a.) Is a defined limit to the number of notes to be issued fixed before issue ?

Afterwards the limit was fixed at

Reply (a.) No limit was settled beforehand. 10,000,000 dollars.

Question (b.) Is every issue of notes made in order to meet the demands of the market P

Reply (b.) Cash notes are issued either by the head office or from it through its branches, and the amount of each issue is regulated to the requirements of the market.

Question (c.) Has the Nanking Government Bank already followed out the requirements of article 9 of the regulations of the Treasury concerning a limitation of an excessive output of cash notes ?

Reply (c.) The regulation for the redemption of cash notes mentioned come into force next year.

But fearing that excessive issues of cash notes to meet the redemption of which no ready money was in hand might disturb the market, and to give the stitch in time, we have only issued 20 per cent. of the number of cash notes previously decided upon.

Securities to meet a demand for cash payments sufficient to cover this issue are deposited with us.

We now intend to await the issue of the Treasury's notes to invest our ready money in them, and then gradually to replace our old notes with Treasury notes as

our old notes are returned to us.

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The present circulation of foreign cash notes in the interior is a great source of loss; and our use of cash notes not only refreshes circulation but is intended to recover our national rights; and we have already reported in detail to the Viceroy to put this on record with the Treasury.

Question (d.) Is 20 per cent. of the present issue of cash notes to be withdrawn this next year?

Reply (d.) The answer to this question has been given above (c).

Question (e.) Have you in hand 40 per cent. ready money to redeem your notes, and have you reliable bonds and securities to cover the other 60 per cent. of your issue ?

Are these securities and ready money held in your office, or deposited elsewhere? Reply (e.) A daily return of the amount of cash notes issued by the head office is made, and does not much exceed 200,000 dollars. The daily return of ready money in hand is over 100,000 taels, or more than 40 per cent.

The amount of cash notes issued by our branches per month amounts in all to 1,800,000 dollars, and they hold over 40 per cent. of ready money.

The balance of 60 per cent. is either deposited in pawnshops, or loaned to merchants, or loaned on property, all of which are reliable securities, which are deposited in the head and branch office.

Of this ready money we hold for the provincial treasurer-salt revenue, pay offices, provision offices, 350,000 taels; for taotais, customs, office, and works, 1,443,000 taels.

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