CO129-519-7 Hong Kong currency- minting of silver dollars 1-11-1929 - 5-2-1930 — Page 5

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subject has been awaiting consideration by the Financial Adviser since September, 1927. Now that a new Financial Adviser has been appointed perhaps he will consider it.

(Sgd.) R. V.Vernon

15. 11. 29.

The Financial Adviser will not be available

for two months. Get by mail a report from Hong Kong

on the subject.

(Intd.) G.G.

16. 11. 29.

at once.

28/4

3.

To Gov. 312.

cons.

(W/c 1 and 2)

25/11/29.

Sir Newton Stabb called and saw Mr. Gent

and me yesterday. He told us that the "decision"

to bring to an end the "Commercial Convention"

which required the discharge of liabilities in notes and not in silver dollars was made by the

banks on representations from the Colonial

Government who considered that the maintenance

of the convention would be harmful to the trade

and prosperity of the Colony. He said that

silver had been brought to the Mints in London. and Bombay to be coined into silver dollars by foreign banks and not, he thought, by any British firms. He thought that there was a serious danger of Hong Kong being flooded with silver dollars for which there was no accommoda-

tion and no outlet. The peak period of arrivals would be in April and May. One method of dealing with the situation would be to control by

licences