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bank, the Kam Tung Ngan Hong, opened an office in Hongkong on the 19th November, 1910, for all kinds of banking business.
About two months ago it closed its doors on account of the troubles in China, but it would be ready to open again if there
should be business for it to do.
4.
The note issue of the Bank of China is 30 millions
of Dollars while that of the Bank of Communications is 85
millions of Dollars. Neither issue is allowed to circulate here.
There is no proper security for either of these issues. Both
Banks are probably incorporated in China, If not so incorporat- -ed their promoters could probably obtain incorporation quite
easily.
These Banks would then be subject to Section 252 of Ordinance No. 58 of 1911, copy enclosed for convenience of reference, but the information and control given by that section
would be of little use in the case of such institutions.
5.
Two courses seem to be open to guard against the danger of one or both of these Banks establishing a branch or branches here. The first is to legislate to the effect that no person shall carry on the business of a bank in the Colony without the permission of the Governor-in-Council. Banking could be defined as any business ordinarily carried on by bankers. Licences would have to be given to existing unobjection₤ -able Banks. The objection to this course is that the licence of the Governor-in-Council might be interpreted as implying a certain degree of financial stability. Nevertheless this is
the course I recommend,
The alternative is to bring diplomatic pressure
to bear against the establishment here of what are virtually Chinese Goverment Departments.
I shall be glad of your instructions in the
matter.
6.
No comments yet.
Private notes are available after approval.