CO129-404 - Acting Governor Claud Severn - 1913 [10-12] — Page 389

Sir Giddes

There can I think be ho doubt that the

decision that we are to regulate our own Note Issues

without reference to the Treas. includes the question

of what securities may be held against the note issues

mit applies

Bank with loung

But this decision/must, I take it, be interpreted

with due regard to special circumstances. In the

present case we have a Bank operating under a Charter

settled by the Treasury and operating outside as well

as inside a Colony. I would therefore make no change

in our system of consulting Treas. I would take the

same course with regard to other H. Kong Bank issues

since though they operate under Col. Ordd.

heir

issues go into China and the currency and business

situation in China is such that crises may b expec-

ted. ? therefore continue to consult Treas. In the

case of the H.K. Banks, and proceed accordingly in

this instance.

My Lords have views as to the Bombay Bonds

34328/12.

-

see

M

Bank

A 474 B.

ALL COMMUNICATIONS

TO BE ADDRESSED TO THE

GROWN AGENTS FOR THE COLONIES,

THE ABOVE BEFERENCE AND THE

DATE OF THIS LETTER BEING QUOTED.

TELEGRAMS,"CROWN, LONDON.”

TELEPHONE 1832 VICTORIA.

Sir,

SELV

со

30053

384

RCC Rr3:29 4G 13.

WHITEHALL CARDENS,

LONDON, S. W.

28th August 1913.

I have the honour to state that the Chartered

Bank of India, Australia, & China has applied to us for the release of £25,000 India 24% Stock Certificates and £160,000 Transvaal 3% Guaranteed Stock Certificates which

are held as security for the Bank's note issue, and pro-

pose to deposit instead the following securities:- £50,000 City of Bombay Improvement Trust 4% Bonds 1910 Mks. 500,000 Prussian Consolidated 3 State Loan Bearer

Bonds. £60,000 Ceylon 31% Stock Certificates £25,000 Egyptian Irrigation 4% Trust Certificates £25,000 New South Wales 4% ten year debentures.

issus funtim

In all hats

The current prices of these securities are:-

India 24% Stock Certificates Transvaal 3% Guaranteed Stock Certificates City of Bombay Improvement Trust 4% Bonds Prussian Consolidated 3% State Loan Ceylon 3% Stock Certificates Egyptian Irrigation 4% Trust Certificates New South Wales 4% ten year debentures

644

87

1910

96

74

93

98

100

We shall be glad to learn what answer should

Надания

3.19

19.

The decision not to consult Treas. refers to Govt. Note

Issues. In the case of our Eastern Bank issues we must

continue to consult Treas. (I have spoken to Sir G. Fid-

des, who agrees in this ).

Consult Treas.

ma

Acy sig.

13

be given to the Bank.

The Under Secretary of State,

&c., &c., &0.,

Colonial Office.

I have the honour to be,

sir,

Your obedient Servant,

Mechus

for Crown Agents.