NOTE ISSUE.

Dominion, Volume 3, Issue 831, 1 June 1910, Page 5

NOTE ISSUE.

AN AUSTRALIAN PROPOSAL. STATEMENT BY THE PRIME MINISTER. 'Ty TclojsrsDh—Frcßß Association —OoDrrlch\ Melbourne, May 31. The Hon. A. Fisher, federal Prime Minister, states that it is likely that a Commonwealth note issue will be proposed on lines which had been proved to be practically sound and beneficial by Queensland. He would not indicate the amount of issue, but said there would lie a reserve of 25 per cent, held against it. THE QUEENSLAND METHOD. The Queensland Government made arrangements for roi.iiug in June, 1893, .£1,000,000 of Treasury notes, to be issued to the banks in such amounts as were required. The Colonial Treasurer reserved the right to determine from time to time the proportion of coin which ho,would require to be lodged by the banks against the notes supplied. The Treasurer accepted the receipt of the banks for the notes supplied, such receipt bearing interest at 4 per cent., subsequently altered to 3 per cent., and in the case of three local banks holding Government deposits at :! j.pi'cent. The amount of the Treasury notes to be issued by any bank was not to exceed its most recently-ascertained average note issue. Arrangements were made for placing notos in reserve in charge of savings banks and other Government offices at places other than Brisbane. The notes were issued for the payment of railway and other Government employees, but they were actually orders payable in Brisbane, whence they had to be remitted, and were not accepted in the country by the banks at full face value. The money for the note? was raised in London, and when the Treasury notes were issued to the banks the banks' notes, aggregating J!500,000, were "retired."