CO129-412 - Governor Sir May - 1914 [7-8] — Page 452

CO129 Colonial Office Hong Kong Records 理藩院香港檔案 All

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The only friction 'that occurred during the whole

of the redemption was that referred to in my previous

report vis: the endeavour of the British and German Banks (who between then redeened mone $10,000,000 worth of old

notes) to set off the new notes ácquired by them against

silver requisitions made on them under paragraph 7 sections (a) and (e) of the Prosedure. The British Bank actually

opened an account with the Bank of China with some

$500,000 of new notes. Then vien a requisition for silver was made on the local agent here by the Chinese 16- legate, the former presented them with a cheque drawn on the Bank of China, which the Chinese Beleġate refused to accept. The agents of the British and German Banks then threatened to present the whole of their new notes for encashment, and had they attempted to pur their words into deeds, the result might well have been to break the Bank of China before it had been two months in existence. must be remembered that no arrangements had at this time been made in Peking as regards this question, and it was not until July 18 that the Ministry of Finance agreed to the two Banks in question meeting requisitions by the tender of new notes in lieu of silver, the reserve being simultaneously increased by $2,500,000, and the credit of the Bank of China thereby maintained.

It

Apart from this somewhat unaccountable attitude of the British and German Banks during the progress of re- demption, no other hitch occurred in any of the working

arrangements/

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