32.
dollar notes:
"In June 1872, at the requisition of several members of the community, the Hongkong and Shanghai Bank applied to His Excellency for permission to make an issue of one dollar notes.
"This was done with the view of meeting a great public demand, more especially on the part of householders and the labouring classes, who have numerous small payments to make and who have almost invariably to suffer very considerable loss from the practice of money-changers and native shop-keepers, who take advantage of the defects in our system of local currency to inflict serious losses on those who deal with them.
"His Excellency granted the required permission and the Bank at considerable outlay obtained and circulated the notes in 1872.
"The correctness of His Excellency's policy has been abundantly proved by the fact that, ever since the first issue of these notes, they have steadily increased in public favour; until now, there are about 175,000 in circulation with a daily demand for more.
"In December 1873, His Excellency the Governor received a dispatch from the Secretary of State intimating the disapproval of the issue by the Lords Commissioners of His Majesty's Treasury for reasons which, it is submitted, under the peculiar nature of the currency in this Colony, are altogether untenable here. This dispatch further instructs His Excellency to order the withdrawal of the notes at present in circulation and to prohibit any further issue unless serious public inconvenience would result from such a course, or any legal difficulty should be in the way.
"His Excellency has in consequence called upon the Hong Kong and Shanghai Bank to show cause why the one dollar note issue should not be stopped and those now in circulation called in.
"The Bank Directors, being fully convinced that the issue of One Dollar Notes in Hongkong is a great public boon and that their withdrawal from circulation would inevitably result in serious loss and inconvenience, desire those of the community, who agree with them, to sign the accompanying Memorial, which will be duly forwarded to the Government.
The Memorial then followed, and set out clearly the reasons for the introduction of the one dollar note. It was stated inter alia:
"By a Proclamation of Her Majesty the Queen dated 9th January, 1863, the Dollar of Mexico had become a legal tender in Hongkong, and was the coin then in circulation. But according to the custom and usage prevalent in the Colony, as in other parts of China, in mercantile transactions, the Chinese Tael weight and not the Dollar formed the standard or unit of value, and by the recognised practice of merchants, $1,000 were regarded as the equivalent of 717 Taels weight of silver.
"The Chinese, however, adopted the habit of stamping, or as it is still locally termed "Chopping" the Dollars, which came into their possession, with the result that this practice made for a large quantity of mutilated and light Dollars. Persons who received
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Page 231
32.
dollar notes:
"In June 1872, at the .requisition of several members of the community, the Hongkong and Shanghai Bank applied to His Excellency for permission to make an issue of one dollar. notes.
"This was done with the view of meeting a great public demand, more especially on the part of householders and the labouring classes, who have numerous small payments to make and who have almost invariably to suffer very considerable loss from the practice of money-changers and native shop- keepers, who take advantage of the defects in our system of local currency to inflict serious losses on those who deal with them.
"His Excellency granted the required permission and the Bank at considerable outlay obtained and circulated the notes in 1872.
"The correctness of His Excellency's policy has been abundantly proved by the fact that, ever since the first issue of these notes, they have steadily increased in public favour; until now, there are about 175,000 in circulation with a daily demand for more.
"In December 1873, His Excellency the Governor received a dispatch from the Secretary of State intimating the dis- approval of the issue by the Lords Commissioners of His Majesty's Treasury for reasons which, it is submitted, under the peculiar nature of the currency in this Colony, are altogether untenable here. This dispatch further instructs His Excellency to order the withdrawal of the notes at present in circulation and to prohibit any further issue unless serious public inconvenience would result from such a course, or any legal difficulty should be in the way..
"His Excellency has in consequence called upon the Hong Kong and Shanghai Bank to show cause why the one dollar note issue should not be stopped and those now in circulation called in.
"The Bank Directors, being fully convinced that the issue of One Dollar Notes in Hongkong is a great public boon and that their withdrawal from circulation would inevitably result in serious loss and inconvenience, desire those of the community, who agree with them, to sign the accompanying Memorial, which will be duly forwarded to the Government.
It
The Memorial then followed, and set out clearly the reasons for the introduction of the one dollar note. was stated inter alia:
"By a Proclamation of Her Majesty the Queen dated 9th January, 1863, the Dollar of Mexico had become a legal tender in Hongkong, and was the coim then in circulation. But according to the custom and usage prevalent in the Colony, as in other parts of China, in mercantile transactions, the Chinese Tael weight and not the Dollar formed the standard or unit of value, and by the recognised practice of merchants, $1,000 were regarded as the equivalent of 717 Taels weight of silver.
"The Chinese, however, adopted the habit of stamp- ing, or as it is still locally termed "Chopping" the Dollars, which came into their possession, with the result that this practice made for a large quantity of multilated and light Dollars. Persons who received
Page 230Page 231
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