BANK NOTE ISSUE

Dominion, Volume 9, Issue 2858, 24 August 1916, Page 7

BANK NOTE ISSUE

• REGULATIONS GAZETTED. The following new regulations regarding the issuo of bank notes in New Zealand aro gazetted :-i- ---. Subject to the provisions of the next succeeding regulation, tho limit of the note issue of any bank shall bo the ■total amount of all coin, bullion, and public securities held by that bank in New Zealand.

If the Minister- of Finance is satisfied with_ respect to any bank that public securities held by the bank in the United Kingdom have been,, duly hypothecated to the Crown by way of a first charge to secure repayment of all moneys which may become payable by the Crown under the Banking Amendment Act, 1914, in respect of notes of that, bank, the Minister of Finance may by warrant extend the limit of the note issue of that bank to the same amount as if the publio securities so hypothecated were held by tho bank within New Zealand.

, Any, such warrant may bo at any time revoked if the Minister of Finance is satisfied that the notes issued or re-issued by the bank in New Zealand and then in circulation do not exceed the limit of the note issue of the bank independently of any public securities so hypothecated'iu the United Kingdom, and on such revocation the charge given by tho bank over these public securities shall bo released by .the Minister of Finance.