CO129-409 - Governor Sir May - 1914 [1-3] — Page 505

J

C

Loaure

501

would be both fair and reasonable to extend to an institution of the standing of the Mercantile Bank privileges similar to those which are accorded to the competing banks, namely the right to issue notes up to the amount of their paid-up capital subject to the deposit of security in one-third of that amount, and the right to issue further notes subject to the deposit of dollar for dollar. If thought advisable the whole security might be in silver dollars, retained in the custody of the Colonial Treasurer.

The Bank's paid-up capital is £562,500, and

they issue notes only in Hongkong.

6.

I have consulted the Executive Council in this

matter and I enclose a copy of the minute in which their advice

is recorded.

I have the honour to be,

Sir,

Your most obedient,

humble servant,

Bring

Governor, &c..