CO129-476 - Acting Governor Claud Severn & Governor Sir Stubbs - 1922 [8-12] — Page 336

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No356.

RES

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€0929

9 DEC 22

GOVERNMENT HOUSE.

HONGKONG. 25th October, 1922.

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Sir,

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"

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With reference to your despatches Nos.209

and 217 of the 5th and 11th July, I have the honour to state that this Government has received from the local branch of the Chartered Bank of India, Australie and China a copy of ite Tenth Supplemental Charter, dated the 16th April, 1922, whereunder certain radical alterations are made in the conditions of the Bank's note issue.

2.

Prior to the grant of this Charter the Chartered Bank was empowered to issue notes to the value of eight million dollars against securities in a third of that sum, and it was required to cover any excess issue by coin or bullion, to be deposited in Hongkong, equal to the whole value of such excess issue. The Bank is now authorised to issue notes up to a total amount of thirty million dollars, the first eight millions of which remains secured as before, while the balance of twenty-two million dollars is to be secured either by coin or by bullion or by

securities to be deposited in London. Of the total note

issue fifteen million dollars may be issued in Hongkong.

3.

The grant of this Charter introduces an

entirely new principle in respect of note issues in Hongkong

and one which is at variance with the policy outlined in the Tressury letter regarding the general question of note issues

THE RIGHT HONOURABLE

WINSTON CHURCHILL, M.P.,

in

&c..

&c..

&C.