BANK NOTE ISSUE.

Manawatu Herald, Volume XXXVIII, Issue 1604, 29 August 1916, Page 4

BANK NOTE ISSUE.

' r NEW PECULATIONS

In the Gazette are published new regulations relating to the issue of bank notes by hanks trading in New Zealand. The principal ones are as under: —

(2) Subject to the provisions of Hie next succeeding regulation, the limit of the note issue of any hank shall he the total amount of all coin (bullion, and public securities held by that bank in New Zealand. (3) 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 hank, the Minister of Finance may by warrant extend the limit of the note issue of that hank to the same amount as if the public securities so hypothecated were field by the hank within New Zealand.

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