CO129-523-12 Currency situation 17-2-1930 - 9-7-1930 — Page 51

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dollars began to circulate in the Colony.

4.

Document No.II. control of Government.

Document No.III.

On the 26th November the Government received

from the Associated Banks, which have no note issue, a

request that Government would remove the 1% tax payable

on notes issued against silver dollars held under the

This was followed by a further

letter on the same subject, dated the 11th of December,

1929.

Meanwhile the Chamber of Commerce addressed the

Government on the situation, in a letter dated the

28th of November, 1929.

Document No I found in the print.

5.

Copies of these letters will be

The matter was considered in Executive Council

and it was decided to meet the wishes of the Banks to

the extent of remitting the 1% duty on notes issued by the Hong Kong and Shanghai Banking Corporation beyond a sum of $45,000,000. A copy of the relevant Gazette notice, dated the 19th of December, 1929, appears as document No.V

The position was further reviewed in

Executive Council on the 23rd of January, 1930, when it was considered that no action by the Government was called

for at that time.

Document No.V in the print.

Document No. VI with annexures Nos.VIa. to

VId. & VId.(1).

6.

The Colonial Treasurer had meanwhile been in close touch with the leading Bankers and others interested, and early this month he furnished me with a report, dated the 4th of March, 1930, of which a copy, together with its annexures appears in the print. It is requested that these annexures may be treated as confidential.

7.