L
412
C
notes had constantly to be refused owing to the amount in circula- -tion being up to the full authorised limit; and that while there
was no desire on the part of his Corporation to have the present
limit increased owing to the very expensive nature of a $1 note
issue, they were prepared to meet the requirements of the Colony
in the matter and that were it decided to increase the limit he
would suggest that it be raised from $226,000 to $350,000.
The Manager of the Chartered Bank after
reference to his Head Office in London replied that his Bank did
not desire to participate in any additional issue of these notes.
The Manager of the Mercantile Bank replied in
the same sense but stated that, as he personally was in favour of participation, he intended to bring the matter again before his
Board of Directors.
4.
In connection with this question I would refer
in the first place to the correspondence contained in the accompany -ing printed paper which passed between this Government and your Department during the years 1872 to 1883, and to the Report of the
Finance Committee on that Correspondence when it was presented to
the Legislative Council in the year 1884, a copy of which is also
enclosed. I would also refer to paragraph 2 of Sir Henry kay's
Despatch No. 334 of 8th. October, 1910, which covered a draft of the Mercantile Bank Note Issue Ordinance, to paragraph 3 of Mr. Bertram Cox's letter to the Secretary to the Treasury No.
34446/1910 of 15th. December, 1910, to paragraphs 3 and 4 of the
Condosure!..
Enclosure 2.
do.
Freas
1942/latter's reply dated 6th. June, 1911, and to the Memorandum of the
Lords Commissioners of His Majesty's Treasury dated 21st. September. Trees 1894, which formed an enclosure to Lord Crewe's Despatch lio. 208
19449 of 22nd. July, 1910.
To
5.
In paragraph 4 of that Memorandum My Lords stated that they considered "that notes should not be of a lower denomination than (say) ten shillings sterling or its equivalent, unless very exceptional reasons for smaller notes are adduced", and
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