CO129-399 - Governor Sir May - 1913 [1-2] — Page 76

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Electric Tramways Company for refusing to accept

Chinese coins which has now been brought to

-

an end only with great difficulty emphasizes

the desirability of prohibition for political

as well as currency reasons, and I am to call

attention in this connexion to the last par.

of the Gov.'s longer Conf. desp. of the 11th

of January.

The modified scheme for a Gort. Note issue

in redemption of H.K.Subsidiary coins, which

the Gov. now puts forward, is one that cannot,

r. Harcourt fears, be accepted. The limitation

of the issue to an amount not exceeding the

deficiency in value of the subsidiary coins

would of itself be unobjectionable

redeemed/

but for the unfortunate circumstance that,

while the issue would be guaranteed by the

revenues and assets of the Colony, and while

it is proposed to make yearly appropriations

from revenue to form a guarantee fund for the

redemption of the notes hereafter, there will

exist no coin reserve against the notes to

ensure their conversion on demand. The provi-

sion of an adequate coin reserve against a

that

Govt. Note issue to ensure all probable demands

for encashment of the notes can be promptly

met is an essential condition of such an issue, and to make this provision it would be neces-