CO129-374 - Public Offices & Others - 1910 — Page 86

I

:

}

2.

HONGKONG & SHANGHAI BANK, LONDON.

82

1 blues **

for circulation, when the Banks have to deposit the said dollars with

the Government and pay 17 p.a. on the notes issued against them, or

what is even worse, face loss of interest on the dollars, for the

notes soon return as the issuing Banks are also the chief deposit

Banks in the Colony.

However we do not care to raise that point.

After all it is not the main one and the finances of the Colony are

not in a condition just now for the Government to entertain the idea

of reducing the tax.

:

Tongge. If wala mo at www! „Idedong

.

i.. 'W

bieg dalw

tand

Jdwob on pl age to mato” dneh

It is a difficult matter to put one's finger on the

exact cause of the premium. Probably curtailment of credit in the

interior, after the financial troubles amongst Chinese here in 1905,

has prevented the Emigrant money that continues to flow in to the

country from finding profitable employment there, and driven it to the

coast ports for deposit in foreign Banks for safety, until required.

I cannot but think that the crux of the matter lies with the import

trade and when a genuine revival takes place in that, the so called

currency anomaly at present existing will very soon be rectified.

Rato"

*i*dnos

The remedy would be to get exchange below importing

point of British Dollars, but that is easier said than done when we

/have