Sessional_Paper_1884 — Page 515

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They have not, however, before them materials which would enable them to judge whether and to what extent a reform is necessary or possible. They will therefore only say that they do not think that the necessity for the step taken by the Governor is proved, and that the power of reducing the denomination of notes, when reserved to Governors, should be exercised by them with great caution, and after reference to the Secretary of State.

My Lords further suggest as a matter of general principle whether it would not be advisable in future to conform more closely to the Colonial Regulations and. to reserve to Governors no power such as that now in question.

The Honourable R. H. MEADE,

Colonial Office.

I am, &c.,

WILLIAM LAW.

(3.)

Governor Sir A. E. Kennedy to the Earl of Kimberley.

GOVERNMENT HOUSE, HONGKONG, 1st April, 1874.

MY LORD,

I have the honour to acknowledge the receipt of Your Lordship's despatch No. 150 dated the 14th October, 1873, on the subject of the issue of One Dollar Notes in this Colony.

2. It appeared to me and to my Executive Council that it was very desirable in the peculiar condition of the currency in Hongkong, that the Mercantile Com- munity and the General Public should have the opportunity of expressing an opinion on a subject so intimately connected with their business and convenience.

3. The communications which have been made to the local Banks and the

Chamber of Commerce have resulted in the numerously and influentially signed

memorial which I now transmit.

4. I also transmit copies of correspondence and newspaper comments on the same subject, which will put Your Lordship in possession of all the information it is in my power to offer.

5. Looking to the serious inconvenience which would result from an im- mediate recall of the One Dollar Notes already issued, and in circulation, I have with "the advice of my Executive Council deferred doing so till I receive Your Lordship's

further instructions and decision upon the case as now laid before you.

The Right Honourable

THE EARL OF KIMBERLEY,

&C.,

I have, &c.,

A. E. KENNEDY.

&c.,

&c.