31.
The annual circulation of local banknotes (from five dollars upwards) averaged, from 1864 to 1872, about two and a half million dollars. But although these notes were popular among the Chinese, the experience of the past had shown that the Chinese mercantile community were liable to sudden panics. For twelve months after the collapse of the Agra and Commercial Banks, which was followed by a run upon the Oriental and Chartered Banks, the circulation of banknotes in Hongkong averaged only one and a half million dollars. Now in June 1872, the Hongkong and Shanghai Banking Corporation obtained the Governor's permission to issue one dollar notes and thus to supply a much felt want. The Bank accordingly issued such notes, commencing in October, 1872, of which there were, twelve months later, about $175,000 in circulation. This raised the total of banknotes in circulation in 1873 to three and a quarter million dollars, and in 1874 the circulation of banknotes reached three and a half millions.
But in December, 1873, the Governor received an intimation that the Lords Commissioners of Her Majesty's Treasury disapproved of the issue of one dollar notes on the ground that these notes would be largely in the hands of the poorest Chinese, who might be even more subject to panics than the mercantile classes. The Governor was instructed to order the withdrawal of these notes unless serious public inconvenience should result from such a course. When the Governor accordingly called upon the Bank, in February, 1874, to show cause why the one dollar notes should not be called in, the whole community took up the matter and a numerously signed Memorial, supported by a special resolution of the Chamber of Commerce, was forwarded to H.M. Government, in March, 1874, in favour of the retention of these one dollar notes.
On looking up the Hongkong Times of March 7, 1874, I find a full reference to the matter. The journal had the following brief editorial comment:
"In another column will be found a copy of a memorandum on the subject of one dollar notes about to be presented to the Governor of the Colony. A dispatch from the Secretary of State instructs His Excellency to order the withdrawal of the notes and prevent any further issue "unless serious public inconvenience will result from such a cause.
"No one will deny that such circumstances now exist at Hongkong. The notes have been found of great convenience and advantage to all classes, until we have an improved and settled currency, we trust they may be continued."
In another part of the paper of the same date appears the following summary of the situation. It is the Memorandum which accompanied the Memorial against withdrawal of these
31.
The annual circulation of local banknotes (from five dollars upwards) averaged, from 1864 to 1872, about two and a half million dollars. But although these notes were popular among the Chinese, the experience of the past had shown that the Chinese mercantile community were liable to sudden panics. For twelve months after the collapse of the Agra and Commercial Banks, which was followed by a run upon the Oriental and Chartered Banks, the circulation of banknotes in Hongkong averaged only one and a half million dollars. Now in June 1872, the Hongkong and Shanghai Banking Corporation obtained the Governor's permission to issue one dollar notes and thus to supply a much felt want. The Bank accordingly issued such notes, commencing in October, 1872, of which there were, twelve months later, about $175,000 in circulation. This raised the total of banknotes in circulation in 1873 to three and a quarter million dollars, and in 1874 the circulation of banknotes reached three and a half millions.
But in December, 1873, the Governor received an intimation that the Lords Commissioners of Her Majesty's Treasury disapproved of the issue of one dollar notes on the ground that these notes would be largely in the hands of the poorest Chinese, who might be even more subject to panics than the mercantile classes. The governor was instructed to order the withdrawal of the se notes unless serious public inconvenience should result from such a course. When the Governor accordingly called upon the Bank, in February, 1874, to show cause why the one dollar notes should not be called in, the whole community took up the matter and a numerously signed Memorial, supported by a special resolution of the Chamber of Commerce, was forwarded to H.M. Government, in March, 1874, in favour of the retention of these one dollar notes.
On looking up the Hongkong Times of March 7, 1874, I find a full reference to the matter. The journal had the following brief editorial comment:
"In another column will be found a copy of a memorandum on the subject of one dollar notes about to be presented to the Governor of the Colony. A dispatch from the Secretary of State instructs His Excellency to order the withdrawal of the notes and prevent any further issue "unless serious public in- convenience will result from such a cause.
爨
"No one will deny that such circumstances now
and
exist at Hongkong. The notes have been found of great convenience and advantage to all classes, until we have an improved and settled currency, we trust they may be continued."
In another part of the paper of the same date appears the following summary of the situation. It is the Memorandum which accompanied the Memorial against withdrawal of these
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