CO129-397 - Public Offices & Others - 1912 — Page 88

87

Treas. ( in reply to 25276 ) that the proposal of the

Col. Govt. for the authorization of an increased

issue of H.K. and S. Bank 1 dollar notes should be

acceded to

-

on the same terms of course as in the

case of the present issue of 1 dollar notes, which

include an undertaking that the notes will be at

once withdrawn if the Govt. issues notes of less

than 5 dollars.

We should of course treat the Bank with consi-

deration if we decided she to issue 1 dollar notes

ourselves shortly after authorizing the increase

of their issue. The total amount of the increase

124,000 dollars is no very serious matter.

recommend authorization of increase to Treas.

and say we are referring the corresp. as to the

issue of 1 dollar notes by the Govt. for the ob-

servations of the Gov.

We hadn't with

wit to bo kill they rolly

23/5

AEL

alouce

In the reply to this Letter the following Number should be quoted.

1068

12

Sir,

TREASURY CHAMBERS.

252

10

th

August 1912.

PECD12 ANG.D

7

The Lords Commissioners of His Majesty's Treasury

have carefully considered Sir H.W.Just's letter of the

You. 13th January last (41096/1911) and its enclosures relative to the redundancy of Hongkong subsidiary coin, and They now direct me to make the following reply.

The difficulties of the situation are so great that in Their Lordships' opinion they admit of no solution less drastic than that agreed upon in September last; in view however of the objections urged by Sir F.Lugard My Lords agree with the Secretary of State that it would be inexpedient to attempt to proceed with the scheme against the opinion of the colony, and its initiation must, at any rate for the present, be abandoned.

Their Lordships further agree with Mr. Secretary Harcourt that the scheme proposed by Sir F. Lugard cannot be carried out with any prospect of success except at a cost beyond the means of the colony.

There remains the scheme now suggested by the Secretary of State vizt. that an attempt should be made to

deal with the problem by the issue restricted to suit

the convenience and purposes of Government of Government

notes of unlimited legal tender in place of redundant

subsidiary coins.

e Under Secretary of State,

Colonial Office.

In