CO129-381 - Governor Sir Lugard - 1911 [11-12] — Page 42

39

to withdraw at once if the Government

issue notes of less than 5 dollars.

replace. They will of course be un-

29553/11

limited legal tender except by the

10.

In the Malay Peninsula the

Currency Commissioners at the Office of

issue of one dollar notes by the

issue, of by a Bank in rodeputy

Streite Settlements Government has

been an enormous success.

Mr.Harcourt

does not see why one dollar notes

should not be also a success at Hong

Kong, and it may be noted that the

Hong Kong and ShBank has recently

ranghai

stated that its issue of one dollar

notes is alwers at the limit authori-

sed. The community are therefore

rocustomed to notes of this low value

end evidently appreciate them, The

Secretary of State would not however.

?

Thoughtt

object if Their Lordships pd

desirable to have also

& Government note of two dollars,

人口

串

Possibly other denosinations of

He prefers

an issue of one follar notes only,

which are most neg. in value to the

subsidiery coils which they will

replace

Reference may

made

m

this point

to the 24h. from the

The

Calay

off which a sofer

0.A.4. malined in the letter from this Office of the 18th of

Way

Dec. 1910.

15

34466/10

(helter of mit for

export, bring it open. Persmally's think it wohe Life.

bolip hou forsale

11.

The procedure to be adopted

would be as follows. A stock of notes

would be prepared and sent to Hong Kong

The Government would then take from e

Bark an accumulated stock of silver subsi-

diary coin, calculated at a price based

on the prevailing rate of discount, plus

a comanission to the Bonk,

The amount to

The silver cu

be paid may be called x.

sidiary coin would then be sold f

port, on a guarantee that it will be

uplted down. Notes to the amount of I

would be paid to the Bank, and from the

proceeds of the scle of the subsidiary

silver coin as bullion standard dollars

of

to the amount of two thirds I would be

A

held as a specie reserve against the

notes issued. The reminder of the

price