CO129-432 - Governor Sir May - 1916 [3-5] — Page 545

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he will no doubt report further on the desirability

of legislation. Say that S. of S. is reluo-

tant to approve legislation of the kind

proposed, which has proved ineffective in

the S.S., if the object can be achieved in

other ways.

All

3.6.16

G.S. 5.6.16

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N° 165.

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25202

REC

REG 29 MAY 161

GOVERNMENT HOUSE,

HONGKONG. 19th. April, 1916.

I have the honour to inform you that I have had

under consideration for some time past a schens for making advmces

to subordinate public servants to pay off their debts. It appeared

from certain cases which came before the Summary Court that Govern-

-ment Clerks and others were the victims of Indian Homey Lenders,

who drove unconscionable bargains by charging exorbitant rates of

interest on promissory notes for short periods, and by exacting

harsh terms for renewing the notes. Such cases as a rule do not

come before the Court until the borrower finds himself unable to

meet the instalments when due, and it is often very difficult for

the Court to get at the truth as to the transactions which preceded

the actual transaction in question.

2.

I found that in the Straits Settlements a

scheme was in force by which advances were made to members of the

subordinate service, and I enclose a copy of the Circular issued

by the Colonial Secretary at Singapore. I therefore caused a

Circular to be issued in this Colony, of which I enclose copies,

with a view to finding out the amount of the advances for which the Government might be liable. The result has been that applica-

-tions for advances to the extent of $21,750 have been received, but many of these disclose debts to Chinese relations and friends

which are not of such a nature as to require relief from the Government. The debts incurred on promissory notes and to tide over periods of genuine misfortune do not amount to more than $10,000

THE RIGHT HONOURABLE

ANDREW BONAR LAW, M.P.,

&C..

&c..

&c. ..

and