CO129-412 - Governor Sir May - 1914 [7-8] — Page 446

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436

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-xe dɔide of sɖɔitatuqmi IIa tædt Jost est

-ớc dâiw qoviş zeed evad ylauɔivety yaɑ moinestĄ

Baldo-obal'i eh supusă ed♬ to molten mit að BEEN

«Avstɓddiw ed of evad aavist to lasƐ edt bra

Ţzove bad I dəżdw ben om bädoser delde attɔgez

od devig saw I „ędźrowdBVIŤ Tobianos of conser

bio lo szablod egzak ezov yodt toát bastazebar

-wod Juo saqut #1 .BOSOŢIUM Svitaludoqa xoi eston

noidqumber to Jaeneodemmos ait od zoizq tadS TOYO

ngatblod excitae ati to bezoqsih tamƐ doneal odt

.Jt#: 000,03% xloo bad fasd oseaaqat edt bas

eb suposƐ edt to Jaega Iasof edt doldy at yay

add 20% atoa onis adv „‡sibuað „M ¡ealɗO −obat'f

-120 Bad „miază otveçë amadoxof bus vitsināmosauï

s'zettalk seasalt eft to tiriga ud♬ tuo beit

dodaquəb quot ai ezseɔlone galmrot,subratonem

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od dolám až zennaa Laɣof ed‡ bua,88 yak 10 81 .OM

.emisty buoyed eza kyod wall bedroqque Bad

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plisatytwo odw‚xual IsdgandƐ à zaoignol edt to

-A76H YAWLISÄ aoolwoX-aotanü to 000,085‡ bied pino

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Xm8 odpaltalki-doatued edt lo has ‚æɔni

10 esateavba zakiet ons Todd Jadt zsegga blvos

ai chedd rodirol of merrich as calflog that

goldqueber dedu na dountant ‚erelaad na ataezoj

-bs exam bas tosilos at bebossosąq yodd (betTSJE

eɛenido yd kind ‚eedom to mieczną ogrel no neousT

edt 11o jen of tiguos redt bas,ezedto bas sinsd

\weg

new notes received in exchange therafor against

cash requisitions made on them in terms of the

above cited memorandum.

10

I am not aware to what extent the group

banks, the Minister of Finance and yourself con-

sider the £1,000,000 advance as a reserve against

the new note issue, but, after a perusal of the

memorandum and bearing in mind my om preconceived

ideas on the subject, I venture to hold that the prinary purpose to which it should be devoted the formation of a reserve, and that, while the

encashment of notes presented by impatient er aus-

picious hälders cannot well be refused, the prac- tice should be discouraged as much as possible. The contention of the British and German banks on the other hand is that redemption shall take place dollar against dollar, in other words that the whole advance shall be thrown into, and absorbed by, the market leaving the new issue without a single dollar behind it, thus creating a reversion

This contention is based to the status quo ante. on their reading of paragraph 7 section (s) of the menerandum, which states inter alia that "all new notes paid shall be retained in safe custody

To act by the chief cashier of department B". literally in terms of this sentence would witk- draw all new notes from circulation and leave the market bare of a currency medium, because so far nost dollara received in exchange have been skip- ped out of the province. The only explanation,

of/