CO129-482 - Public Offices - 1923 — Page 798

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sir,

796

COLONIAL SECRETARY'S OFFICE

HONGKONG.

20th September, 1923.

Referring to our recent interview on the subject

of your Bank's Tenth Supplemental Charter. I am directed to state that this Government considers it to be imperative that all Banks, which are permitted to issue notes in the Colony, should keep in the Colony an adequate reserve of coin, such reserve to be under the control of this Government.

I am to suggest that, in the case of your Pank,

such reserve should amount to one third of the total issue in

the Colony. Thus, if the entire note issue of $15,000,000 allocated to Hongkong were in circulation $5,000,000 in coin would be deposited in custody of this Government.

I am to request that you will be so good as to

put this proposal before your Court of Directors.

I am, Sir,

Your obedient Servant,

(Sd). A.G.M. FLETCHER,

Colonial Secretary.

The Manager,

Chartered Bank of India, Australia & Chins,

HONGKONG.