To the Editor of the "Norta-Catna Datty News."
Sir,—In "Truth," of August 1, I noticed a statement to the effect that shareholders of the Hongkong & Shanghai Bank were liable to an amount equal to their holding of capital in addition to the amount of the note issue which at the date of the last report was double that of the paid- up capiial. T presume that "Truth" did not make this statement unless 1t were based on fact, but although T have lived over twenty years in China it was news to me, and I wonder how many of those who dabble or invest in the shares of this bank are aware of their potential liabilities.
I an, ete., Truth" has discovered a mare's nest.
The daily advertisement of the H. 8. Bank shows that half the capital is paid up, shareholders—being thus liable for as much more as each of them holds. But this is quite a usual custom, as other banks' advertisements show. As regards note issue, above acertain limit, the Hongkong Government requires that for ey note there should be the equivalent in silver coin or gold bullion in the treasury, to which it has access at all times—Ed.
Text read from the printed page and cleaned; old type leaves the occasional error.