Copy.
The Honourable
The Colonial Secretary,
Sir.
Hongkong.
Hongkong, 29th April, 1916.
373
We, the undersigned British Banks, having note issues in this Colony, beg to approach the Hongkong Government with the request that, for the present, the export of British Dollars may be prohibited from the Colony.
Our reason for making this request is on account of the sudden and unprecedented advance in the price of Silver which, unless the export of British Dollars is prohibited, might result in such a drain on our Silver Reserves as to cause a very serious dislocation of the Colony's trade.
Banks of issue have a particular responsibility in the financing of the Colony's trade and it is absolutely essen- tial that they hold large amounts in Silver Coin against which they can issue Notes to meet the demand for the trade require- ments of South China. In the event of large withdrawals of Silver Coin at the present time for sale abroad, our Silver Reserves, which are held chiefly in British Dollars, might become so depleted as to necessitate a very large curtailment in our note issues.
Te would mention that there is no necessity to place any restriction on the movements of Mexican or Chopped Mexican Dollars, which are also legal tender in the Colony, nor would it be necessary to place any restriction on small amounts of British Dollars taken out of the Colony by ordinary travellers.
We have, etc.
THE CHARTERED BANK OF INDIA, AUSTRALIA & CHINA
Sd.
Wm. Dickson,
Manager,
THE HONGKONG & SHANGHAI
BANKING CORPORATION
Sd.
N. J. Stabb,
Chief Manager.
THE MERCANTILE BANK OF INDIA, LTD.
Sd.
C. Champkin, Manager.
No comments yet.
Private notes are available after approval.