CO129-374 - Public Offices & Others - 1910 — Page 85

CO129 Colonial Office Hong Kong Records 理藩院香港檔案 All

HONGKONG & SHANGHAI BANK

ANKSON.

RECO Rear 23 FEB 10,

COPY OF LETTER RECEIVED FROM HONGKONG & SHANGHAI BANKING CORPN.

HONGKONG, dated 29th Jan. 1910.

My dear Addis,

HONGKONG GOVERNMENT NOTE ISSUE:

81

We would be only too willing to put forward a further

expression of our views on this subject if we thought there was

anything of value we could add to what has already been said.

It is difficult to see in what way the trade of the

Colony would benefit by a Government note issue and it also seems

open to doubt if it would add to the Colony's revenue. The expenses

attaching to a note issue are far from light even to us, with all

the available machinery for working it, and as the Government would

probably have to organize a separate department and build treasuries

of their own, they would find the cost a pretty heavy item.

When / GỠvernment Tote Issue vs. Ttarted fa the Strait Settlements the tax in Bank Notes was only 4% p.a; it has since been raised, now is only 1% p.a.

but even

With regard to what you write about the premium on

X

Bank Notes there is no doubt that, as you put it, the tax of 1% pa.

8 a contributory cause, for it can hardly be expected that issuing

Banks will give out Notes in Exchange for Silver Dollars which are

imported simply because they are cheap, not that they are required

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