The Bank Note Issue Bill.

Manawatu Herald, 5 September 1893, Page 3

The Bank Note Issue Bill.

The Bank Note Issue Bill which was put through all its stages and became law last week, provides that bank notes are to be tho first charge on a bank's assets. It temporarily enables the Governor to declare bank notes to be legal teiider, and provides for the retirement of the same during a limited time, and under special circumstances it is permanently enacted that all hank notes are to be a first charge on the assets, and the property of tho bank issuing them, and payable in gold only at the oflice of the bank :it place of issue. The remainder of the Act is of a temporary character, and will only remain in force for twelve months, or until two months after the meeting of next session of Parliament. The Governor, when he is satisfied that the assets of the bank exceed the liabilities by at least tho amount of paid up capital nnd reserved profits, may declare by gazette notification, and in three newspapers the notes of such bank to be legal tender within the colony. Such notes shall be payable, in gold at the place of issue at the expiration of tho period limited by the original proclamation under the Act, or any successive proclamation ; all such proclamations to have force ot law notwithstanding anything contained in any act, charter, or other document at any time. Within six months after the expiration of the period of the original proclamation under the act, the Colonial Treasure! 1 on being satisfied that a bank noto covered by any proclamation has been duly presented for payment at bank issuing same, and has not been paid, shall pay the same in gold to any bomt fide holder, not being the bank who may present the same for payment at the Treasury.-- Herald.