COMMONWEALTH BANK.

Dominion, Volume 5, Issue 1494, 17 July 1912, Page 7

COMMONWEALTH BANK.

OFFICIALLY OPENED. By Telegraph—Press Association—Copyright Melbourne, July 16. . The Prime Minister, Mr. Andrew Fisher, was the first depositor at the opening of the Commonwealth Bank.

The Commonwealth Bank was established by an Act of Parliament passed last year. It has a capital of raised by debentures. The interest to be paid on tho debentures is to bo fixed by regulation. The initial expenses, as well as the preliminary capital for starting the bank, are to lie found by tho Treasury, and the Commonwealth is responsible for all the bank's debts, but all such advances are to be repaid by tho bank. In addition to tho ordinary functions of the bank the new Commonwealth institution is to have power to lend money on security of land, whether it is freehokPor not, or to lend in any way that mnv be prescribed, and, further, may make advances on any security which the management-*! the bank considers satisfactory. Tho decision as to tho acceptability or otherwise of the security rests absolutely with the directors. ' • The bank is not, however, to be given power to issue notes for circulation payable on demand to the bearer. The head office of tho bank is ultimately to be in tho Federal territory, but for the present its location will be fixed by the board of commissioners or the directors. There will probably be five directors —possibly less—irremovable for the term of five years, and eligible for reappointment. Although their salarijs may .not bo reduced during office, the directors are not given the independent position of Judges and the Public Service Commissioner and inspectors, whoso salaries are fixed by statute. The salaries of the directors will appear on each year's Estimates, leaving their management open to full criticism by individual Parliamentarians. Branches of the'bank may be established outside Australia, and the bank may act as agent for foreign instihilions. The bank will also conduct savings bank business.