CO129-468 - Governor Sir Stubbs - 1921 [6-8] — Page 536

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so that for the purposes of trade they form a quite satis-

factory currency.

In view of the small number of the notes

of higher denomination which would be required the cost of manufacture would presumably be somewhat high in proportion so that, for the present at any rate, I would not advocate

a Government issue.

50.

A further possibility, if it is considered

undesirable for the Government to take the responsibility

of a note issue, would be to arrange with one of the greet

Banks of the East to issue Weihaiwei notes. It is doubtful

whether they would think it worth while in view of the

smallness of the total requirements, but the Hongkong and Shanghai Bank might possibly be ready to do so es their local agents, Messrs. Lavers and Clark, could undertake the management for them and by over-printing their existing Shanghai or Hongkong notes "Weihaiwei" they would save the expense of engraving new plates.

If this were done and these notes were made

the only legal tender notes a stamp-duty of 1% could be charged, as in Hongkong and the Government of Weihaiwei would thus receive a revenue of perhaps £10,000.

I can, if desired, consult the Chief Manager

of the Hongkong and Shanghai Bank and submit definite proposals if he is prepared to consider the suggestion

favourably.

51.

The obvious alternative to increasing revenue is to decrease expenditure but the expenses of administration have been kept down so low that it is practically impossible to find any item which can be abolished or even reduced.

Some economy might be effected in the

following respects:-

(a). The Commissioner at present draws salary and allowances amounting in all to $17,520. These emoluments were certainly not too high in the case of an officer of

the

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