!
፡
3
t
3.
HONGKONG & SHANGHAI BANK, LONDON.
83
have to buy more gold than we can sell, and still have more silver
coin in our treasuries than we require. Even that might not solve
the question entirely, for chopped mexican dollars are also legal
currency and there must be large quanttities in various places in
China ready to be dumped here, if the issuing Banks freely give
out notes in exchange for them.
We never refuse to give out notes in the ordinary
course, but only against dollars imported, and the present situation
has not the advantages to us that the Government probably imagine.
The effect of the premium on notes is simply that exchange has been
kept at a higher level than silver
-
opinions may differ as
to
whether that has, on the wholembeen good or bad for the colony; but
one thing is certain, it has kept exchange far steadier than it
would otherwise have been possible to do, and that in itself must
be benficial to trade. The export merchant sells his bills at a
higher level but the importer has the advantage of higher rates
for his trade. The Bank derives no benefit from the premium, it
really amounts to the fact that notes are the currency here and the
present premium is virtually a safeguard,against being flooded with
/all
No comments yet.
Private notes are available after approval.