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markets and dislocated the export trade of China, exchange is at the parity of silver.
4.
In Hongkong the situation is complicated by
)
the fact that the trade is not conducted in silver but in bank
notes with the result that the banks of issue are forced to protect themselves against excessive payments in silver and with- -drawals of their notes.
The result is a premium on bank notes and the Causes for this condition are I think clearly explained in the enclosed memorandum from Mr. N. J. Stabb, the Chief Manager of the Hongkong and Shanghai Banking Corporation. It is written from the Bankers point of view of buying and selling gold.
I have the honour to be,
Sir,
Your most obedient,
humble servant,
Array
Governor,&c..
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