CO129-456 - Governor Sir Stubbs - 1919 [10-12] — Page 231

N°

360.

Rass

254

ا المنيل

212

GOVERNMENT HOUSE,

HONGKONG. 12th November, 1919.

4+/-2527/18

4-894/18

My Lord,

With reference to Sir Henry May's Despatch

No. 195 of the 2nd July, 1918, and to Mr. Long's telegram of the 10th October, 1918, I have the honour to forward for Your Lordship's consideration the enclosed copy of a letter from the Chief Manager of the Hongkong and Shanghai Banking Corpora- -tion asking that the authorised issue of the One Dollar Notas of the Bank be further increased up to a limit of £2,000,000. The chief reason for the large demand for

2.

*

One Dollar Notes, apart from increased population and business, lies in the fact that silver dollars are no longer in circula- -tion. The currency of the Colony has become the bank notes of the Hongkong and Shanghai Banking Corporation and the exchange value of the Hongkong Dollar as represented by these notes being below the value of the silver dollar has had the in- -evitable result of driving silver dollars from the Colony.

3.

So long as the conditions as regards security are maintained as in the past, there does not appear to me to be any objection to acceding to the request of the Bank and I recommend therefore the approval of their proposals as necessary to meet the requirements of the Colony under present circumstances.

4.

As regards waiving the tax of 1 per centum

on this issue I am unable to recommend the suggestion of the

JHE RIGHT HONOURABLE

VISCOUNT MILNER, G.C.B.,

&C..

&0..

&c...

Bank