CO129-429 - Public Offices & Others - 1915 — Page 235

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At the same time it appears to My Lords that the anomaly thus disclosed ought not to be permitted to continue longer than can possibly be avoided. The simple remedy would seem to be that the banks should exercise the powers of issuing notes to an extent sufficient to make the premium disappear, and it might be argued that the privilege of making such issues granted to the banks carries with it the duty of meeting the demand in full. But the banks doubtless feel that the condition attached to the right of issue in- volving the deposit of one silver dollar for each additional dollar note issued above a limit already reached might result, in their having to face a possibly extravagant loss upon the silver dollars thus deposited. Unless they can be compelled to issue the necessary amount of additional notes on these terms it is for consideration whether some concession,

possibly temporary, should not be made to them, permitting the issue of a larger amount of notes against security than at present authorised. The only other alternative would seem to be the issue of notes by the Hong Kong Government. My Lords would invite the observations of Mr. Bonar Lew upon this subject, which has They understand already formed, the subject of official correspondence between the Colonial] Office and the Government of the Colony.

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I am,

Sir,

Your obedient Servant, "

The Bradbury