CO129-482 - Public Offices - 1923 — Page 799

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Copy of advices from Chartered Bank of India, Australia

and China, London, to Hongkong Branch, dated

1st November, 1923.

Note Circulation.

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We have to acknowledge your letter of 21st

September last in the above connexion, together with copy of letter from the Colonial Secretary's Office at Hongkong

of 20th idem, sent for our perusal. We request you to

convey to the Colonial Secretary our appreciation of the

suggestion that the Bank should keep in the Colony an

adequate reserve of coin against its note issue, such

reserve to be under the control of the Hongkong Government,

and we desire you to inform him that it has always been the

Directors' invariable policy that the note issue of the

Bank, of which they are justly proud, should in no way and

at no time be jeopardised, and that they have always insisted

on an adequate reserve in coin being maintained as a

safeguard in addition to the security required by Charter.

You are therefore to place on record the Directors'

instructions that of the total issue in Hongkong

outstanding at any one time & reserve of coin to the extent

of one third is always to be maintained and to be deposited

under the control of the Hongkong Government. We wish

you to convey verbatim to Mr. Fletcher this record of the

Directors' policy.