Sessional_Paper_1884 — Page 551

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As to the deficiency of subsidiary coins, I need say nothing, as your Govern- ment has the remedy in its own hands; but, with regard to the rest of the question, I would draw your attention to Sir MICHAEL HICKS BEACH'S despatch No. 148 of the 20th of November, 1879. The proposal therein made for an issue by Govern- ment of One Dollar Notes, based on a specie reserve, appears to me to be the only way open to meet the present difficulties. You will remember that, in the event of the Government adopting that course, it would be necessary for the Hongkong and Shanghai Bank to withdraw their issue of One Dollar Notes, in accordance with their undertaking, as soon as the new issue was ready. The question of being satisfied with a smaller reserve of specie than the full nominal value of the notes, might be considered at a future date, but it is essential that, in the first instance, if the scheme is adopted, the issue should be made in the way pointed out by the Lords of the Treasury, who have given great consideration to the subject.

I have the honour to be,

Sir,

Your most obedient, humble Servant,

Governor Sir G. F. BOWEN, G.C.M.G.,

&c.,

&C.,

&c.

DERBY.