DRAFT OF PAPER CURRENCY BILL.

New Zealand Spectator and Cook's Strait Guardian, Volume III, Issue 218, 1 September 1847, Page 3

DRAFT OF PAPER CURRENCY BILL.

Whereas it is expedient that the Paper Currency of New Zealau 1, should be made anil issued exclusively by the Government thereof, and to that end that the making and issuing of Paper Money by private i idividuals should be strictly prohibited. Be it therefore enacted, by the "Lieutenant-Governor oi New Zealand, with the advice and consent of the Legislative Council thereof, as follows: — Bank op Issue, and Manager thereof. 1. For the purpose of suppK ing the colony of New Zealand with a paper currency, there shall be established therein, by the government thereof, a bank of issue, to be called the " Colonial Bank of Issue." 2. The business of the said bank shall be managed and conducted by such managers and other officers, as her Majesty shall from time to time be pleased to appoint. Provided alwajs that it shall be lawful lor the Governor to appoint such managers and officers provisionally, until her Majesty's pleasure shall be known. 3. Every such manager and officer shall hold his office during her Majesty's pleasure. 4. No person so to be appointed as aforesaid, shall be capable of holding the office of manager, or of being an officer of the said bank, unless such person shall have first taken and subscribed the following oath, before a Justice of the Peace, which oath every such Justice shall on appl catiou to that effect, administer accordingly : — I A.B. do solemnly swear that I will not issue or re-issue any of the bank notes of the " Colonial Bank of Issue," except in exchange for cash, according to the rate herein established, and that I will constautly retain and keep within my control and custody for the use and accommodation of the public, not less than one-fourth part of the cash so received in exchange, and that I will not part with the control or custody of the residue of such cash, except under the authority of a warrant to me for that purpose directed, under the hand of the Governor for the time being ; and that 1 will in all other respects, duly and faithfully discharge the duties of my office as a manager of the said '' Colonial Bauk of Issue," So help me God. (Signed) 5- Every such manager and officer shall, before entering on the duties of his office, and from time to time, give security for good behaviour in his office by bond to her Majesty and her successors, with two sufficient securities, in the sum of £ , or in such other reasonable sum as her Majesty or her successors, may from time to time think fit torequre. 6. Every such surety may withdraw from liability for the future, under any such bond, by giving to the Attorney-General three calendar months' notice of his intended withdrawal, without prejudice nevertheless to any previous breach of the condition of such bond.

11. BUSINESS OF THE BANK. 7. The business of the " Colonial Bank of Issue," shall be confined to the issuing of bank notes in exchange for cash, and to the payment of such notes in cash on demand. 8. The business of, and relating to the issue of such notes, shall be conducted and carried od, in offices to be established for that purpose, at Auckland and Wellington, and at sucii other places as the Governor shall from time to time by proclamation in that behalf direct. 9. Every such office shall be open for business, from to o'clock daily, except Sunday, Christmas day, and Good Friday. 10. Every note of the said Bank, shall be expressed to be payable in pounds sterling and in cash, which cash shall be taken to mean the current gold and silver coin of the realm, at the English mint prices; and such foreign silver coin as shall from time to; time be approved by the Lords Commissioners of her Majesty's treasury, and at the rate or value to be fixed by them ; Piovided always, that the description of such foreign silver coin of the rate or value thereof, so to be fixed as aforesaid shall first be published by proclamation in the New Zealand Government Gazette, by the Governor for the time being, uuder the authority of the said Commissioners. 11. No note of the said bank shall be issued or re-issued therefrom except in exchange for cash, and at the late herein provided. 12. No such note shall be issued for circulation, except from some one of the dffices to be for that purpose established as aforesaid. 13. Every such note before being issued or re-issued for circulation, shall bear the- signature of the manager conducting the business of the office from which such note shall be \sued, testifying that the same hath been issued or re-issued in exchange for cash, as by lav/ required. 14. No bank note to be issued or re-issued, as aforesaid, shall be made for the payment of less than the sum of one pound. And every surh note shall he expressed to be for payment of a sum in pounds sterling, without any fractional parts of a pound. 15. A tender of any such note or notes shall be a legal tender to the amount expressed in such note or notes, and shall be taken to be valid as a fender to such amount for all sums above two pounds on all occasions on which any tender of money may be legally made, so long as the said " Colonial Bauk of Issue," ahal continue to pay such notes in cash on demand. 16. The bearer of any such note or notes shall be entitled immediately on demand to be made at any of the offices of the said " Colonial Bank of Issue," aud during the hours of business thereof, to receive payment in cash for such notes at the rate herein provided ; and the manager of every such office is hereby required to pay the same accordingly. 17. All persons shall be entitled to demand from any of the said offices, (during the hours of business thereof), bank notes in exchange for cash, at the rate aforesaid ; and the manager of every such bank is hereby required to make such exchange accordingly. 18. The manager conducting the business of any such office shall be responsible for the safe* keeping and due application of the bank notes from time to time to be supplied to such office for circulation, and of the cash to be received in exchange ior the same. 19. The ultimate payment in cash of all notes to be issued or re-issued from the said " Colonial Bank of Issue," as hereinbefore provided, shall be charged and chargeable upon the general revenue of the colony of New Zealand : or in the event of a division of the colony into two or more provinces, then upon the general revenue of such provinces in equal shares. 20. The cash to be from time to time received at any such office, in exchange for bank notes, shall be applied and disposed of in manner following, and not otherwise, (that is to say,) so much of the said cash as shall be equal in amount to one-fourth part at the least, of the amount of such bank notes, for the time being in circulation, shall always be kept to meet the current demands of the public by the manager conducting the business of such office, uuder his own control and custody, subject nevertheless to inspection and account, as hereinafter mentioned. The residue of such cash, or so much theieof, as he may deem expedient, shall from time to time be invested, or placed out at interest on good and sufficient security, by or under the direction of the Governor for the time being. Provided always that no such investment shall be made in the colony of New Zealand, and that the monies so invested be made repayable, after months notice to the Colonial Treasurer, and in cash according to the rate hereby provided. 21. All bank notes shall be deemed to be in circulation, from the time the same shall have be.in issued by any such manager, as aioresaid, until the same shall have been returned to the office from which the same shall have been issued.

22. The interest to arise from the monies so to be invested shall be applied, in the first instance, towards defraying the expenses in r curred in conducting the business of the said " Colonial Bank of Issue ;" aDd the surplus, if any, shall be paid to the Colonial Treasurer for the public uses of the colony, and the support of the government thereof. 23. No manager conducting the business of any such office shall part with the custody of, or pay or transfer the cash applicable for investment as aforesaid, or any part thereof, except under the authority of a written warrant, bearing the signature of the Governor for the time being, stating the sum to be paid — the name of the person to whom the sum is to be paid — the name and the place of abode of the person to whom the sum is to be lent — the nature of the security — and the rate of interest to be received for the same. 24. Every such manager who shall issue any of the notes of the said bank otherwise than in exchange for cash as aforesaid, or who shall pay any of the cash received in exchange for such notes, otherwise than in payment of the notes of the said bank, or under the authority of such warrant, as aforesaid, and every other person whatsoever aiding, abetting, or soliciting such managers so to do, shall forfeit and pay for evary such offence the sum of £ , and shall respectively and personally to all intents and purposes be deemed and taken to be debtors to the Crown in a sum equal to the amount so misapplied, as aforesaid. 25. Every such Manager shall keep, or cause to be kept, in books to be kept for that purpose, at the office of which he shall conduct the business, accurate accounts in writing of every transaction of, or relating to, the Bank Notes issued, or re-issued therefrom — of or relating to the amount of surh Notes in circulation from time to time — and of, or re- j lating to, the gold or silver coin held by such Manager — and generally all such minutes or entries, the sight or inspection whereof may tend to secure the rendering of true ac- | ■counts, and such as may prove that the busi- ; nes of such office is conducted in manner by law required. ! 26. Every Manager conducting the business of any such office shall, on the Monday .of every week, transmit to the Colonial Treasurer a just and true account of the amount of Bank Notes of such office in circulation at the close of the business of the said office, on the next preceding Saturday, distinguishing the Notes of £5 and upwards, and the Notes below £5. And also an account of the total amount of gold and silver coin held by the Manager of such office, at the close of business on each dayof the week ending on that Saturday. 27> Every such account shall be verified by the signature of the Manager rendering the same, and shall be made in the form in | ichedule A, to this annexed. 28. Every such Manager shall also transmit to the said Colonial Treasurer a true copy of the warrant, under the authority whereof he may have, during the then preceding week, paid over any monies for investment as hereinbefore provided. 29. If any such Manager shall neglect or refuse to render any such account or copy as aforesaid, in the form, and at the time required by this Ordinance, or shall at any time render a false account or copy, such Manager shall forfeit and pay for every such offence, the sum of £ 30. From the returns so to be made as aforesaid, the said Colonial Treasurer shall at the end of the first period of four weeki, and so at the end of each successive period tf four weeks, make out a general return (distinguishing the several offices) in the form to this Ordinance marked ( )of the amount of Bank notes in circulation at the close of such preceding four weeks, and of the amount of all the gold and silver coin held by each Manager at the same period, and shall cause snch general return, together with the copies of all such warrants as aforesaid, respectively verified by his signature, to be published in the next succeeding Government Gazette, in which the same can be conveniently inserted. 31. It shall also be the duty of the Colonial Treasurer, to publish in the Government Guzeite, on or before the first of March in each year, verified by his signature, a statement of the total amount of such Bank notes in circulatic n, issued or re-issued from the several offices of the said Bank of Issue which shall be in circulation at the close of the year then next preceding ; of the total amount of the gold and silver coin held at every such office at the same period, and of the total amount of the cash of the said Bank then invested at interest as hereby required, shewing the nature of the security, the rate of interest, and the names of the parties to whom the same may have been lent ; and also an account of any cash which having been invested at interest, shall have been repaid, together with an account shewing the expenses incurred in the conduct and management of the said Bank for snch year, and the nature and amount of

the funds received, applicable to defray the same. 32. If any such Colonial Treasurer shall neglect or refuse to make or publish such general return, yearly statement, or account, or to publish the copies of such warrants, or shall make or publish a false return, statement, account, or copy, he shall for every such offence forfeit and pay the sum of £ 33. All monies which shall have been invested at interest, and which shall have been repaid by the borrower thereof to the Colonial Treasurer, as aforesaid, shall be deposited by him in some place of security, being there to remain until required either for the current demands of any office of the said Bank of Issue, or for re-investment at the discretion of the Governor, as herein before provided. And no such money, nor any part thereof shall be removed from such place of deposit except under the written warrant of, and signed by such Governor, directing its application to one of the said purposes, and specifying the particulars of the same. 34. If any such Colonial Treasurer having the custody of such money, shall pay or dispose of the same, otherwise than under such authority as aforesaid, he shall forfeit and pay the sum of sS . and shall be deemed and taken to be a debtor to the Crown for the amount he shall have so misapplied. 35. And whereas in order to insure the rendering of true and faithful accounts of the amount of Bank Notes in circulation, and the amount of gold and silver coin held by each Manager, and that the business of his office be conducted as hereby required, it is expedient that Inspectors, to be from time to time appointed for that purpose, should be empowered to cause the books of such Managers, and the amount of gold and silver coins held by such Managers as aforesaid, to be inspected as hereinafter mentioned. Be it further enacted, that all and every such book and books shall be open for the inspection and examination at all seasonable times, of any such Inspector authorised in that behalf in writing, signed by the Governor for the time being. And every such Inspector shall be at liberty to take copies of, or extracts from any such book or account as aforesaid ; and to inspect and ascertain the amount of any gold or silver coin, or Notes then held by any such Manager. 36. If any Manager, or other officer, or person keeping any such book, or having the custody or possession thereof, a power to produce the same shall upon demand made by any such Inspector, shewing (if required) his authority in that behalf, refuse to produce any such book to such Inspector for his inspection and examination, or to permit to inspect and examine the same, or to take copies thereof, or extracts therefrom, or of or from any such account, minute, or entry as aforesaid, kept or entered therein. Or if any such Manager, or officer, or person, having the custody or possession of any such gold and silver coin or Notes, belonging to the office of any such Manager, shall refuse to permit, or prevent the inspection of the same ; every such Manager, officer, or person so offending, shall for every such offence forfeit and pay the sum of £100. 37. And be it further enacted, that it shall be lawful for the Governor from time to time, to make all such rules and regulations not being repugnant to the provisions hereof, as to him shall seem necessary for the conduct and management of the said Bank of Issue, for securing the value and promoting the credit of the currency, to be created under the authority hereof, and generally for carrying into full effect the purposes of this Ordinance. Provided always that no such rules and regulations shall have any force or effect until the ' same shall have been published in the Government Gazette.

111. — Private Paper Money, &c, Prohibited. 38. It shall not be lawful for any Banker to draw, accept, make, or issue in New Zealand, any bill, or note or engagement, for the payment of money on demand. 39. If any Banker shall draw, accept, make, or issue, any bill or note for the payment of money on demand, every such Banker shall forfeit and pay the sum of £20. And every such hill or note heretofore made or issued, or which shall hereafter he made or issued, shall be, and the same is hereby declared to be absolutely void, and of no effect, anything to the contrary thereof, notwithstanding. 40. All promissory or other notes, bills of exchange, or drafts, or undertakings in writing, being negotiable or transferable, for the payment of any sum or sums of money, less than the sum of twenty shillings, or any orders, notes, or undertakings in writing, being negotiable or transferable for the delivery of any goods, specifying their value in money less than the sum of twenty shillings in the whole, heretofore made or issued, or which shall hereafter be made or issued, shall be, and the same are hereby declared to be, absolutely void, and of no effect. 41. If any person or persons shall by any act> deed, or means whatsoever, publish or utter

any such notes, bills, drafts, or engagements as aforesaid, for a less sum than twenty shillings, or on which less than the sum of twenty shillings shall be due, and which shall be in anywise negotiable or transferable, or shall negotiate or transfer the same, every such persoo shall forfeit and pay for every such offence any sum not exceeding £20, nor less than £5. 42. All promissory or other notes, bills of exchange, or drafts or undertakings in writing, being negotiable or transferable, for the payment of twenty shillings, or any sum of money above that sum, and less than £5, or on which twenty shillings or above that sum and less than £5 shall remain undischarged, and which shall be issued after this Ordinance shall come into operation, shall specify the names and places of abode, of the persons respectively to whom, or to whose order, the same shall be made payable, and shall bear date before or at the time of drawing or issuing thereof, and not on any day subsequent thereto, and shall be made payable within the space of twenty one days, next after the date thereof, and shall not be transferable or negotiable after the time hereby limited for the payment thereof. And every indorsement to be made thereon, shall be made before the expiration of that time, and to bear date at or not before the time of making thereof, and shall specify the name and place of abode, of the person or persons to whom, or to whose order the money contained in every such note, bill, draft, or undertaking is to be paid. And the signing of every such note, bill, draft, or undertaking, and also of every such endorsement shall be attested by one subscribing witness at the least, which said notes, bills of exchange, or drafts, or undertakings in writing, may be made or drawn in words to the purport or effect, as set out in the schedules to this Ordinance annexed, marked C. & D. 43. All promissory or other notes, bills of exchange, or drafts, or undertakings in writing, being negotiable or transferable for the payment of twenty shillings, or any sum of money above that sura, and less than £5, or in which twenty shillings or above that sum, and less than £5, shall remain undischarged, and which shall be issued after this Ordinance shall come into operation, in any other manner than as aforesaid. And also eveiy indorsement on any such note, bill, draft, or other undertaking, to be negotiated under this Ordinance, other than as aforesaid, shall be and the same are hereby declared to be, absolutely void. 44. If any Body Politic, or Corporate, Banker, or Person, shall, after this Ordinance shall come into operation, publish, utter, or negotiate any promissory note, or any bill of exchange, draft, or undertaking in writing, being negotiable or transferable for the payment of twenty shillings, or above that sum, and less than £5, or on which twenty shillings or above that sum, and less than £5 shall remain undischarged, made, drawn, or indorsed in any other manner than is hereinafter directed, any such Body Politic, or Corporate, Banker, or Person so publishing, uttering, or negotiating any such promissory or other notes, bill of exchange, draft, or undertaking in writing as aforesaid, shall forfeit and pay the sum of £20 45. Provided always, that nothing herein contained, shall extend to prohibit any draft or order drawn by any person on his Banker, or on any person acting as such Banker, for the payment of money held by such Banker or person to the use of the person by whom such draft or order shall be drawn.

IV. — Miscellaneous Provisions. 46. All fines and penalties to be imposed under the authority hereof, shall be procured in a summary way. 47. This Ordinance shall come into operation on the day of 184 . 48. In the construction of this Ordinance the word "Governor" shall be taken to mean the Officer for the time being administering the Government in chief of New Zealand. And the word " Bank" shall extend and apply to all Corporations, Societies, Partnerships and persons, and every individual person carrying on the business of banking whether by the issue of Bank notes or otherwise.