STATE BANK.

Dominion, Volume 5, Issue 1271, 28 October 1911, Page 5

STATE BANK.

AUSTRALIAN SCHEME By Telceraph—Press Association—Oopyrieht (Rec October 27, 11.20 p.m.) Melbourne, Octobor 27. Tho Commonwealth Bank Bill is to bo introduced. It provides for a Government bank, tho capital of which is to bo raised by tho issue of bonds. An advance, may bo made by tho Federal Treasurer from tho Consolidated Revenue Fund to enable tho bank to defray tho expenses incidental to its establishment and to provide sufficient capital for it to carry on with. Tho money so advanced is to bo repaid. Tho bank will bo managed by a Board of Directors consisting of tho governor of tho bank, tho deputy-governor, and a director, who will be appointed by tho Governor-General. Half the net profits from tho bank will bo placed to a reserve fund, and tho other half to a redemption fund for the repayment of the moneys advanced by tho Treasurer or for tho redemption of bonds. If tho funds exceed the amount of tho bonds in circulation, the excess may bo used for tho redemption of the Commonwealth debts, or the State debts taken over by tho Commonwealth, The bank may invest tho money held by it in Government securities approved by the Federal Treasury, in loans on land security, or in any other prescribed mannor. Tho board is empowered to establish a Savings Bank.