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the greater part of the balances, which may from time to
time be available in excess of our immediate needs, on
deposit. If the money is sent home to be placed on deposit
by the Crown Agents and has them to be withdraw and sent
out again to the Colony we shall incur the expense of
remittance both ways and shall also run the risk of losing
on exchange.
I would add, also, that in view of the higher
rates of interest which money generally commands in the East
we can probably count on receiving from 1% to 1% more in
interest on a deposit here than on a deposit in London,
There is no appreciable risk involved in depositing large
sums with such institutions as the Hongkong and Shanghai
Bank, the Chartered Bank, the Mercantile Bank of India and
the Peninsular and Oriental Bank and in fact much of the
money which we have sent home has been deposited by the
Crown Agents with the London branches of these banks, I
would therefore ask that I may be authorized to place money
on deposit with the banks in the Colony when I consider that it will be advantageous to do so. It is perhaps unnecessary
to fix any limit to the amounts which may be so deposited
but, if it is considered desirable to do so, I would suggest
a maximum of five million dollars.
I have the honour to be,
My Lord Duke,
Your Grace's most obedient
humble servant,
7.6. Slutty
Governor, ko,
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