CO129-520-2 Currency- note issue 22-11-1929 - 11-11-1930 — Page 28

Telephone, No.: VICTORIA 1234.

RECEIVED

28FE

NATIONAL

FOR

CHEMA

• MEN:

DISABLED

please quote Regd. No.

In reply

COLICE

Dear Ellis,

28

14

TREASURY CHAMBERS,

WHITEHALL, S.W.1.

27th February, 1930.

{

In your official letter of 14th February

(72703/30), respecting the note issue of the chartered

Bank of India, Australia and china, you ask for an

explanation of what the Bank means by "the present

exigencies in Hong Kong".

We understood this as a reference to the

recent large coinages of silver dollars for Hong Kong

($8,093,000 reported to us by the Mint). As silver

coin does not circulate in Hong Kong these dollars

would tend to be used to draw out additional notes

from the banks.

In Samuel Montagu and Company's Weekly

Review for the 31st October, 1929, the purpose of the

coinage was stated to be to eliminate the premium on

the notes.

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