CO129-446 - Others & Individuals - 1917 — Page 248

affreciati pari fasen.

how that silve

is

The 1/4 fauty

we

very much above

are quite safe

with Indian rufer securities. If silver goes

of further

7

it goes down

our unfer securities gout; if

/

A

t^i

equally safe.

-

and

if it goes down below 44th and

1/4 fanity

by scoop

is still maintained we

thak

in proportion to the further fall.

The difficulty in the

way

consists

в

the present Bank Issues, but I believe the

capacity of China for absorbing found notes

is huge

J

and

Itie Banks have always

been discomaged from listing that

capacity by having to deposit with the

{ost dollar

for

Allan

against

Their

excess issues, (and I think they still have to

hay 1% for annum

on the whole of their issues) I

This actually losing honey except in 50 for

premium,

А

A

on the excess ifjues

their notes command i

They almost

invariably

do.

At present we hold some

15 million

244

dollars against the

excess flue

J

16

H.R. S. Back, and it seems almost

white of this 5

sinful that

the

Legen

suffly of silver should be locked up When the demand of Endia is so urgent.

Part of

it could certainly be invested in

budian refer securities

on

Cent

& India

short-dalit Indian bills, but I should

| Refer that the Sost of thong rather than

The Bank

I the

! invowed

-

lant of my

should math the

very large hifis

the proposed method to form

proposal when formulated.

If you approve generally

in Amine

the first step would I think be for to talk over the seasome confidentially

with Sie C. Addie, so position

A-o

to clear up

affecting the Banks -

let Sin L.. A. Know What Il

dong.

and

ht

I would have the 4.0. to tackle the treasury at a later stage. They

Cau

3

are not receptive & we

anticipate that they will lift their hands

in horror. That process is less notinctive whene

will under way. AFC schemes are

1979/1