Sessional_Paper_1884 — Page 547

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Enclosure 4.

MEMORANDUM ON SUBJECT OF ONE DOLLAR NOTES.

A memorial, signed on behalf of five Public Companies employing a considerable number of labourers, was presented to the Governor, complaining of the insufficient number of Dollar Notes in circulation, which was the cause of a grievance severely felt by nearly all persons in the Colony, and especially by those who had to pay large numbers of workmen.

2. The number of Dollar. Notes in circulation is $226,000. They are issued by the Hongkong and Shanghai Bank alone, and permission was given to this Bank in 1872, to issue notes of less value than One Pound Sterling, contrary to the provision of the Colonial Regulation. It was proposed in 1873 to recall these notes, but, on a representation of the inconvenience that would be caused thereby, the Secretary of State consented to their not being recalled, but restricted the issue to those in circulation, and would not permit the privilege to be extended to any other Banks.

In June 1876, the Secretary of State for the Colonies stated that the question of an issue of One Dollar Notes by Government was under consideration, and in 1879, the opinion of the Governor was asked as to the issue of Government One

Dollar Notes.

In the following year the Hongkong and Shanghai Bank, having asked the consent of Government to the establishment of a Branch at Singapore, the Secretary of State gave permission, contingent upon the unconditional withdrawal from circula- tion by the Bank of its One Dollar Notes, in event of Government deciding to issue

notes of that value. The Bank consented to these terms.

The Governor, in reply to the Secretary of State's despatch, stated that he was not prepared at present to recommend the issue of Government One Dollar Notes, and recommended the legalization of the Japanese Yen.

The memorial referred to in paragraph 1 was referred to the Chamber of Commerce to express its opinion therein. In reply, the Chamber confirmed the statement of the memorialists, and added that Chinese money changers and shop- keepers always exact a premium on Silver Dollars under pretence that they are short in weight. The remedy which the Chamber recommend is that the Hongkong Bank

should be allowed to increase its issue to five hundred thousand One Dollar Notes.

The Major-General Commanding the Forces, and the Commodore forward letters from Military and Naval Paymasters strongly confirming the assertion of the memorialists that great inconvenience is caused by the want of a sufficient number of One Dollar Notes. The Paymaster of the Buffs reports that he has not been able to obtain Dollar Notes from the Banks for the payment of the Troops for nearly twelve months. It is stated that non-Commissioned Officers and men frequently lose by the Silver Dollar, the Chinese refusing in many instances to give

the full value.