1935-12-06 — Page 7

HONG KONG DAILY PRESS. FRIDAY, DECEMBER 6, 1935.

NATIONALIZATION OF SILVER BECOMES LAW

Government Takes Action To

Avert Undue Fluctuations Of Local Dollar

EXCHANGE FUND CREATED TO

BUY OR SELL FOREIGN

EXCHANGE

surrendered under section 7 of this Ordinance.

Legislative Council Meeting

EXPRESSION OF SYMPATHY TO THEIR MAJESTIES

(3) The Fund, or any part of it, đất này bao held và song Kong cu renty or ́m any other currency dr in gold or silver or may be invested by the Treasurer in secutijip- proved by the Secretary of State: und the Treasurer may for the ac- count of the Fund buy or sell mich currency or said or silver or Secur“ Ities accordingly. Any much pur- At the meeting of the Legasia. chases or sales of currency shall Etive Council, yesterday, His Excel- be for immediate delivery, The lency Alr Thomas Southern, Treasurer may borrow for the ac- oficër administering the Govern- count of the Fund e.ther in Hong ment, moved a resolution express Köng or elsewhere on the security ing sympathy" in the name of the! of any asset held by the Fund or Colony, to Their Majesties on' the of the general revenue of the Co-death of Her Royal Highness, The' lony; Provided that the aggregate amount of borrowings outstanding at any one time' shall not exceed thirty millon dollars or, if held in foreign exchange, the equivalent at the current rate of exchange.

COMPULSORY EXCHANGE (4) The accounts of all transac- tions of the Fund shall be audited at such times and in such manner as the Secretary of State may from time to time direct.

Princess Victoria,

In support of the resolution, His

Excel.ener said: An Ordinance to make provision for the establishment and management of an

Exchange Fund and to amend the law relating to Legal Temler in the Colorry and to the notes issued by certain banks was rushed though all its stages yesterday at a meet- ing of the Legislative Council and became law.

After deliberations with the three principal British Banks" in Hong Kong this decision was arrived at, and in effect the fund will take over the silver now held against the note issues of the banks in exchange for Certificates of Indebtedness of the Hong Kong Government, which will be redeemable at the option of the Colonial Treasurer The Fund will also take over in exchange for Hong-Kong Currency all- British dollars, Mexican dollars and Hong Kong subsidiary silver coin and silver bul- lion in the Colony whether in private hands or otherwise. The rate or rates at which the Exchange Fund will he prepared to buy or sell will not be published, and any profit or loss resulting from the operations of the Fund will be for the Government

account.

HỌN. MR. ALABASTER RUSHES BILL THROUGH

||

tender in the Colony to any amount and any ability, whe- ther incurred before or after the commencement of this Ordinance,

In moving the first reading of, ing on its sale when the new, lawfully issued shall be legal the Currency Ordinance. 1935... the system is fully established and it Hon. Mr. C. G. Alabaster said:

Ls possible, to remove the embargo Sir. With your consent I rise to

would be adventitious, and the move the suspension of so much of Government has decided after full the Standing Orders of this Coun- consideration that the only equit to pay silver currency may be dia- cil as stands in the way of the in-able course is to treat this silvercharged in such note and in parti- troduction without previous notice, in the same way as that he'd cular everý bank note lawfully is- and of the passing through all its against the note issues and carry sued shall be deemed to be the stages at this meeting, of the Cur- those profits or losses to the Ex-currency of the Colony for the rency Bill copies of which are be-change Fund.

purpose of any promise to pay fare members.

RATES WILL NOT BE PUBLISHED | printed on any such note.

i 4. Each note-issuing bank shall surrender to the Treasurer on de- and all silver coin and sliver bullion which it was required by the aforesaid Ordinances or Char- ters or otherwise immediately be

fore such demand to deposit against Its note issue.

I think that Your Excellency

For the time being the Exchange would wish me, in introducing this Fund will be hed in the form of Bill, to express the Government's foreign exchange or gold or silver, appreciation of the quiet good. sense of the community in the dif- which the Treasurer is empowered ficult currency and exchange post-to acquire by purchase or ex- tion through which the Colony has change. Further Certificates may been passing.

be issued to the note-issuing banks It is hardly too much to say that if our excharge charge acquired from them by the In payment for any foreign ex- market was used only by the Hong

CERTIFICATES OF -' and Certläcates in their Kong community. It might be pes-possession will be accepted by the

INDERTEDNESS Treasurer in payment for any 5.- The Treasurer is authore position until conditions in other foreign exchange so'd to them by used to issue to note issuing banks the Fund, It will thus be possible for the purposes, laid down in this and it was possible to take a final the note circulation to be exsection certificates of indebtedness

sible to allow the currency to re-. main in the

present anomalous

parts of the world became éléarer.

decision about the future.

·· SPECULATORS OUTSIDE OF

COLONY

Fund,

OF

par ded

contracted as

may in the form in the Schedule, prove desirable, against Certifi cates backed by the assets of the Exchange Fund and the responst- Bank bility of the Government, notes will no longer be convertible into sver, and will be made ful legal ter der.

But this is of course not the The exchange market of the CELSC. Colony is open not only to those who have legitimate interests here. but also to any who may wish to

The rate or rares at which the make use of it. There is there- Exchange Fund will be prepared to fore a danger that the exchange buy or to sell will not be published, value of the Hong Kong dollar may and the accounts of the Fund wil be subjected to wide fluctuations be audited under special arrange- through the action of speculators ments to be approved by the Be- and other Interests outside Colony, to the detriment of own legitimate commercial industrial interests.

(2) The Treasurer shall issue in exchange for silver coin and silver bulion surrendered in ac- cordance with section & certificates to the face value of the notes covered by such silver,

(3) For the purpose of raising funds to pay for-

(0) Suver surrendered under section T of this Ordinance; and

() foreign exchange thecretary of State. Any profit or ours resulting from the operations | and of the Fund will be for Govern-

rent account.

After full d'scussion with the Heads of the three British note-

The B then passed its second and third readings and became

issuing banks, it has been decided. law being seconded by the Hon. with their concurrence, that action Mr. Edwin Taylor, should be taken to avert this pos- sibility and to enable the Govern- ment to restrict fluctuations in the exchange within such mits may seem desirable from time to

time.

24

An Ordinance to make provision for the establishment and manag?- ment of an Exchange Fund and to amend the law relating to Legal Tender in the Colony and to the Notes issued by certain banks.

Be it enacted by the Governor The method proposed to be adopted is set out in the first six of Hong Kong, with the advice and clauses of the Bill before the consent of the Legislative Counch Council These have been discuss-thereof, as follows:-

METHOD PROPOSED

to

2.-In this Ordinance:-- »

"Foreign exchange" means all currencies other than Hong Kong currency and includes sterling and other Empire currencies.

ed in detall with the Heads of the 1.-This Ordinance may be cited three banks, who fully concur in as the Currency Ordinance, 1835. their provisions. It consists in the establishment of an Exchange Fund, which will have power buy or to sell foreign exchange a rates which will be fixed by the Colonial Treasurer after consulta- "Note-issuing bank" means the tion with an Advisory Committee. Chartered Bank of India, Austra- consisting of himself as Chairman, la and China, the Hong Kong and Mr. V. M. Grayburn, representing Shanghai Banking Corporation and the three note-issuing banks, and the Mercantile Bank of India Mr: N. Young of His Majesty's Treasury (for so long as his ser- vices are available). The Fund

against the Lote-issues of the

Limited.

7--Every person-hoiding, whe- ther on his own account or on account of any other person any British Dollars, Mexican Dollars, Hong Kong subsidiary silver coin, OT aiver bullion exceeding in amount or value tan dollars ather silver coin and silver bullion referred to in section 4 shall surrender the same within one month of the commencement of

than the

this Ordinance to the Treasurer, who shall pay for the coin in Hong Kong currency at its face value and for the bullion at the rate of one hundred and twenty eight cents per fine ounce.

8.—Every person who contravenes any provision of this · Ordinance shall be liable on summary 'con- viction to imprisonment for any period not exceeding one year, to the forfeiture of the coins and ballion in question and to a fine not exceeding twice the value of such coins and bullion.

8-Nothing in this Ordinance shall affect the holding of silver by any person under licence from the Treasurer and the Treasurer may by licence authorise any person to hold silver, in quantities covered by the cence, which in the "opinian of the Treasurer is reasonably necessary for such person's bual-

ness,

OBJECTS AND REASONS 1-The object of this Ordinance

Honourable Members will bäve heard with profound regres of the death on December 3 of Her Royal Highness The Princess Victoria, beloved sister of His Majesty The King. I know that Honourable® Members will destre to give expression to their loyal sympathy with Their Majesties The King and Queen and the Members" of ¦ the Royal Family in Their sorrow. I therefore move the following resolutiori:

"The Members of the Legisla- tive Council of Hong Kong have learned with profound soLTOW OF the death of Her Royal Highness The Princess Victoria and desire to present their humble duty to His Majesty and to express their loyal and respectful sympathy and Queeh aid the Royal Family with Their Majesties The King

in Their bereavement."

Sir Henry Pollack,

The resolution was supported by the Senior Unomcial Member, and the Hon. DITO, mehter.

the

senior Chinese.

OTHER MATTERS Mimites of the meeting November 18 were confirmed after which routine papers were tabled Report of the Finance Committee by the Hon. Mr. Tratman The

(No. 18) dated November 28 was also adopted.

Moved and seconded by the Hon, Mr. C. G.. Alabaster, and the Hon. Mr. D. W. Tratman respec- tively the following bills were read. a second and third time and be came law:

"A Bill to amend the Volunteer Ordinance, 1933."

"A Bill to amend the Probates Ordinance, 1897.".

"A Bill to provide for the In- corporation of the Hong Kong Travel Association":

GIFTS

"Ideal"

* FOR HER

FITTED

DRESSING

CASES

IN SOLID SILVER

AND

BEAUTIFUL ENAMKLO

"Perfect

FOR HIM ⋆

CIGARETTE BOXES AND CASES

IN BEAUTIFUL ENGINE

TURNED SILVER AND

THE MOST MODERN DESIGNS.

SILVERWARE DEPT.

LANE, CRAWFORD, LTD.

THE JAPAN HOTEL ASSOCIATION,

(Affiliated with the Famxorr Horán Company of the Pacific Cosat, and

the Umro Horms Contrait of Amerion.)

ATAMIL-

ATANT HOTEL MEMEET HOTEL

MEMBER HOTELS

(45 IN ALL

N JAPAN

KOSHIEN (DCAY NAGOYA:-

Osaka and Kobo) KOHINN HOTEL

KOBE+ BEPPU (Kyushu):ORTAL HOTEL

KAMENCO HOTEL TOR HOTEL OHUZENJI (Nikko) KYOTO —

Laksana HOTEL

ĠIEU---

NAGARAGAWAKOTIL KAMAKURA—–—–—– KAIKIN HOTEL

is to establish Government con- "A B to amend the law relat- trol of exchange in the Colony withing to the custody or Infants." a view to prevent undue ductua-

“A Bill to make better provision | KAMIKOURI tion,

in this Colony for the granting by magistrates or separation, and maintenance orders to married persons

2-Section 3 provides that law- fuky issued bank Notes shall be local currency and legal tender to any amount.

(Japan Alps) *KAMIKOddr

Iarental HOTEL KÄRUIZAWA' *Maxier Horaz ↑ Mirasa - Horsk

"A Bill to regulate the importa- tion and the removal of sand."

"A B to further and protect the activities of The Girl Galdes IN CHOSEN- Association, and to incorporate the Hong Kong Branch thereof "

"A Bill to amend the Ferries Ordinance, 1917."

"A B to provide for the in-

in Hong Kong of the Catholic Mission of Macao

3. Section 4 provides for the or gold surrender by the note-issuing purchased

banka út af silver coin and silver *accordance with section 6, it shall be bullion which they have hitherto lawful for the Treasurer, to been required by law to deposit- Issue further certificates to against their note issues, any note-issuing bank, and

Moved and seconded by the 4.-Section 5 provides for the to require such bank to pay issue by the Treasurer of certinon. Sir William Shenton, and the to him for the account of cates of indebtedness instead of Hon. Mr. J. P. Braga respectively the exchange fund referred sliver as backing for bank noteswhen it passed its

the following bill also became law. to in section 6 the face value Itsso makes it clear that no-third reading:

second and of such further certificates. thing in the Ordinance will em- (4) The Treasurer may apply the power any note issuing bank to corporation of the Administrator proceeds of sale of foreign ex-issue notes in excess of any change or gold for Hong Kong maximum mit laid down in the currency in accordance with sub- Ordinances or Charters governing sectiori (3) of section 6 to the re- the issue of such notes.

5.-Section 8: provides for the es- demption of certificates issued under sub-section (3) of this sec-tablishment and management of

Jan Exchange Fund, -“ (5) Nothing in this Ordinance 6. Bection T provides that every shall empower any note-issuing person holding British dolars, bank to issue notes in excess of Mexican dollars, Hong Kong sub- any maximum mit laid downsidiary silver coin, or silver bulion in the Ordinances or Charters exceding in amount or value ten governing the issue of auch Notes, dollars. (other than the süver coin ¡MO. ADC... and in issuing certificates under and silver bullion referred to in Mr. D. W. Tratman, CMG) this section the Treasurer, shall section 4) shall surrender the take into account such maximum same within one month to the limita.

Treasurer who will pay for the same in Hong Kong currency.

7.-Section 8 provides the penal-

tion.

THOSE PRESENT

Presiding at the meeting was His Excellency. The Officer Ad- ministering the Government, Sir Thomas Southern KIBE., C.M.G. Others present were:-

His Excellency Officer Commanding the Troops.

Major F. B. Thackeray, DS.O.,

The Colonial Secretary (Hon.

the

General

The Attorney General (Hon. Mr. C. G. Alabaster, KC, OBE)

Becretary for Chinese Affairs (HỜI MẸ H L Auth)

Colonial Treasurer (Hon. Mr.

Pirector of Pobile Works (Hon Mr. R. M. Henderson)

Harbour Master and Director of Aerial Services (Comdr. G. F. Hole, RN playin

Director of Medical and Banitary Services (Hon, Dr. A. R. Welling- ton5:

Inspector Ceneral of Police (Hon, ME T H. King

EXCHANGE FUND 6-(1) There shall be establish-' "Bank notek lawfully issned" ed a fund to be called "the Ex-t'es for contravention of the Or-Edwin Taylor) means Notes issued in the Colony change Fund" which shall be un

(dinance. will take over the. stiver now held by any of the note-issuing banks der the control of the Treasurer 8-Section 9. saves the holding of banks in exchange for Certificates: (a) before the commencement of and shall be used for the purpose aliver under licence where the of Indebtedness of the Hong Kong this Ordinance in accordance with of regulating the exchange value holding of such silver for business Government; which will be redeem the provisions of the Hong Kong of the

currency of Hong Kong. purposes is considered by the able at the option of the Colonia and Shanghai Bank Ordinance, The control of the Treasurer shall Treasurer reasonably necessary. Treasurer. The Fund wil also 1929, the Mercantile Bank Note be exercised in consultation with take over in exchange for Hong Isaue Ordinances, 1911 and 1928, an Exchange Fund Advisory Cora- Kong (currency; all British Dolars or the Charter of Incorporation of mittee of which the Treasurer shall Mexican Dollars and Hong Kong the Chartered Bank of India, Aus- be ex officio Chairman and of subsidiary silver coin and silver tralla, and China, or any Bupple-which the other members shall be bullion in the Colony whether in mental Charter of that bank, and appointed by the Governor, private hands or otherwise The (b) between the commencement of term "ballon" Includes chopped this Ordnance and the 13th day transferred into this Fund have received a cable from Messrs. (2) Thèze, shalbe paid or The Hong Kong, Stock Exchange silver coiris. but does not include of July. 1938, in accordance with all silver coins or sliver but Derrick & Co. Local Secretaries manufactured, silver ware, provi- the above mentioned provisions. a lion surrendered to the Trea- In Singapore of the Raub Austra glom has been made for the hold- modified by this Ordinance.

Hon. Mr. JJ Paterson aurer under section 4 or under lian Gold Mining Co. Ltd an ing of sticks by silversmiths under

HƠN MI VÀ H. Ba NOTES TO BE LEGAL TENDER section 7 of this Ordinance. There nouncing the output for the four licence. The Elyer so nationalized

Hond Me? 1 KITS 3-AS from the commencentent shall be paid from the Fund the weeks ending thirtieth November: MYR. R. Butters (Deputy Cle may not be exported by its present holders. Any profita or losses aris- of this Ordinance ak bánk nótás avms payable in respect of diver to be 1899 ounces.”

For Conden

GOLD OUTPUT

Hon.

KO

Henry Pollock, Kt.

Hon, Sir William Shenton; Ki Hot Dr SWT, OBE, LLD. Hòa Ma LF Ban OEE Hoff Mr. T N Chan

KYOTO HOTAL * MITAKO HOTEL KIOTO STAtion

HOTEL

NAGOLA HOTEL

NARANTAN

NAKA HOTEL

NIKKO

KANATA HOTEL

OSAKA

DOAVIL Horat. HOTEL NEW ORAXA

OSAKA HOTEL

MATSUSHIMA PART HOTAL MIYAJIMA

MITATIMA HOTAL MIYANOSHITA: (Hakons) FUJIYA ROTELL

IN TAIWAN (FÖRMOSA)— 1AIHOKU-Tarwan BazowATHOTEL

OTBU (neer Lake'

Bina) HOTEL LAKE BIwa

SAPPORO :-

SAPPORO GRAND

BEIJO

Fato:HALWAY

HOTIL KELJO:-*

CHOREN BOTAL

HSINKING:

FLOTIL

SHIMONOSEKT BASTO HOTELS TAKARAZUKA (near Kobe) TAYARILOKA

Forkl

TOKYO1

IMPERIAL HOTEL KEMPEI HOTEL. OMONA HOTEL TOKYO RAILWAY

HOTEL

UNZEN

KYDANU HOTEL Τυχαί εστιν Shinyʊ HơTIL UNEEN HOTEL YOKOHAMA

Horki. N

IN MANCHURIA ——

YAMATO HOTEL DAIREN

YAMATO HOTEL HOSHIGAURA÷- YAMATO HOZIL'

*Open in Summer Only. hi

For information, please apply to Secretary,,

GRAND

HOTEN (Mukden)- YAMATO HOTEL

RYOJUN (Pert Arthur) -

YAMATO HOTEL

THE JAPAN HOTEL ASSOCIATION Care of Truno Busrau' Department of RailwaTE, Tokyo,

WAR

HAS STARTED IN

ABYSSINIA

PICTORIAL MAPS OF THIS

COUNTRY ARE OBTAINABLE

∙AT

HONGKONG DAILY PRESS

MOUNTED

50 cts, each

PRICES:

UNMOUNTED

25 cts: each