CO129-390 - Acting Governor Claud Severn - 1912 [5-6] — Page 432

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FEGE 22 JUL 12

Report of the Finance Committee of the Legislative

Council on the Correspondence presented to the

Council by command of H.E. the Governor

on the subject of the issue of

One Dollar Notes.

The Finance Committee have carefully considered

the whole question of the issue of One Dollar Notes in Hong

Kong, and have read all the correspondence connected there-

with. The Committee have also endeavoured to elicit all

the information to be gathered upon the subject, and beg

to report as follows.

2.

A more extended issue of One Dollar Notes is most

desirable for the convenience of the community, if not

absolutely necessary. The Committeo consider that the

circulation would never exceed $400,000 to $500,000, and

that it would be confined to Hongkong, Canton and Macao.

The Committee understand that notes command no extensive

circulation at the coast ports.

3. The Committee consider the issue of One Dollar

Notes by the Goverment unadvisable under the conditions

laid down by the Imperial Treasury, as the local Government

could not recoup any portion of the considerable expense of

initiating and carrying on a note circulation, and, in view

of the serious demands on the Revenue of the Colony caused

by the extensive public works in progress, the Committee

think it undesirable that any permanent addition to expend-

iture should at present be made. Under these circumstances

it may be found practicable to substitute for the plan of

a Government issue a scheme submitted by the Directors of

the Hongkong and Shanghai Banking Corporation.

4. It would never be possible, in case of a Govern-

ment