CO129-489 - Governor Sir Stubbs & Sir Clementi - 1925 [8-12] — Page 267

CO129 Colonial Office Hong Kong Records 理藩院香港檔案 All

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Conditions at the present moment are such tra$7

one is mistified to anticipate what would happen in the next minute. Time is flying and no little anxiety is being felt as to what can be done to safeguard the interests of the public. It was thereby discussed and carefully considered at the meeting that the only possible way of overcoming the present difficulties would be to petition to the Government for its assistance.

I am directed to submit on behalf of the Merchant Community, for the consideration of the Government, the proposal adopted at the meeting. It was suggested that there shall be no better means of relieving the present deplorable situation than for the rongkong Government to issue Treasury Bonds say to the value of not more than $30,000,000.00 at the rate of 6% interest per annum for which merchants of the Colony are at liberty to apply upon furishing the Government with their property, goods, or shares etc as security. It is anticipated that once these Treasury Bonds are put into circulation in the market the financial situation will automatically ease a great deal, thus eliminating the difficulties of meeting obligations. In support of this suggestion it was quoted that during

the Great European War when Singapore was be-fallen with

the great Rubber Slump, the situation there was in such precarious condition that wholesale bankruptcy would have been resulted had it not been for the timely aid of the Government in the issuance of Treasury Bonds to save the

situation. Reference was also made to the financial crisis

in the United States of America in the year 1907 when total

destruction was threatened owing to heavy investment of landed property and shares etc. It was only due to Mr. J.P.

Morgan's untiring appeal to the States Government to issue

similar Treaaury Fonds that the situation was ultimately

saved. The efferts taken by these Governments have achieved

very appreciable results and are traceable in our present

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