CO129-381 - Governor Sir Lugard - 1911 [11-12] — Page 26

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The Gov. being opposed to what he calls " repudiation

of any of the H. Kong subsidiary coinage, some other solution see

seems necessary. I think we might get rid of the redundancy

without loss to the Govt. by the issue of Govt. notes for

one dollar on the following plan.

One dollar notes at Singapore have been a colossal suc-

cess. There is no reason why they should not be a success at

H.Kong also.

There are some one dollar notes at present, so that the publb

is accustomed to them. The H.K. and S. Bank issue them but

they are limited to an issue of 226,00

.000 dollars, and the Bank

can be required to withdraw them on the Gort. issuing notes

for less than 5 dollars..

My reason for suggesting e issue of Govt. notes of

one dollar only are that we snall avoid competing with the or-

dinary issues of the Banks, and we shall be meeting what from

1. experience is likely to be a keen demand.

SA.S.

In view of possible currency developments in China a Covt.

note issue at present is not in itself desirable, since we may ha

have to redeem them in a dollar of higher value, if any scheme