CO129-504-10 Currency system- premium on bank notes as compared with British silver dollars 10-1-1927 - 30-8-1927 — Page 25

Sir,

COPY.

Colonial Secretary's Office,

Hong Kong.

10th January 1927.

25

I am directed by His Excellency the Governor to

thank you for the Memorandum on the Currency System of this

Colony forwarded to the Treasurer on 18th December 1926. His

Excellency has read the Memorandum with great interest but

feels that the abnormal premium of Hong Kong Note Currency

is but one manifestation of the general abnormality prevailing

in China at the present time and that when trade and inter-

course resume their natural flow the relation between the

silver and paper currencies of the Colony will automatically

return to natural levels.

For these reasons His Excellency considers that it

would be unwise for Government to intervene in the matter.

I am, Sir,

Your obedient Servant,

(Sgd)

L.E.Hopkins,

Manager,

P. & O. Banking Corporation,

HONG KONG.

E.W.Hamilton.

p.p. Colonial Secretary.