BANKS AND THE ENEMY'S SUBJECTS

Dominion, Volume 7, Issue 2242, 31 August 1914, Page 8

BANKS AND THE ENEMY'S SUBJECTS

i f_ _ - ■ LEGALITY OF DEALINGS. ■ As doubts are, entertained by the banks in; Australia "in regard to the legality of their dealings with German customers since the outbreak of war, and having regard to the proclamation against trade and intercourse with tho enemy, t3io Attorney-General (Sir W. H. Irvine) recently, made tho following statement:—

< (lj Where accounts have been opened by persons of German nationality at present in Australia, the banks will not commit any. offence by : paying cheques drawn by such customers in tlio ordinary course. (2) It is a\ offence for a, bank to remit money directly or indirectly to any part of the enemy's country. (3) Where before tho outbreak of war monoy was standing to tho credit o?. any person (including firm or company) resident in, carrying on business in, or be.mg in the German Empire, with authority, to some person hero to operate on the account or iviflh authority to the bank to make payments on tho custoomer s account, it is not an offence to pay here cheques drawn by the person authorised, or for the bank to make payments here under such authority, and debit the customer's account. Such payments do not come within the prohibition against entering into any new commercial, financial, or other contract or obligation within tho meaning of tho proclamation of August 5, 1914. In .this class of case questions may arise as between the banks and their customers asto the effect of the war on the authority of the agents as. to which the At-torney-General is not called on to express an. opinion. (i) The making of any now advances or tho establishing of any new credits m favour of tho persons mentioned ill No. 3, is prohibited. . . ' i (5) Where a bank before'the outbreak of war was authorised to collect money for a customer resident, carrying oil business, or being in the German Empire, it commits no offence by continuing to collect money during the war. It may not, of course, transmit to the customer the monoy so collected' Until the restoration of peace . W Where a bank holds .money' collected during the war for a . customer resident, carrying on business, or being in the German Empire, it may not make payments on the customer's account against suclr money. The remarks apply also to Austrians.