FEDERAL BANK NOTES

Taranaki Daily News, Volume LIII, Issue 93, 28 July 1910, Page 5

FEDERAL BANK NOTES

DETAILS OF THE NEW SCHEME. By Cable.—Press Association.—Copyright Melbourne, July 27. In the House of Representatives the\ Australian Note Bill was introduced and read a first" time. (Six 'months after the proclamation a bank is forbidden to issue or circulate notes issued in any State, such notes not hoing legal tender. A separate Bill will lie introduced imposing a prohibitive tax on notes issued by the banks. Until arrangements have' been made for kprinting notes the Treasurer may issue forms of State or. bank notes with the alterations deemed necessary. Moneys deI rived from the issue may be held by the ' Treasurer in gold or be used in redeem-. ! ing notes or be expended as Parliament directs. The Treasurer may invest the moneys derived or deposit them in the bank, or the securities may be sold or disposed of by the Treasurer, the interest to be paid into the Federal consolidated revenue. The gold reserve to be equal to onefourth of the value of the notes' to seven millions, and equal tq the value of the notes above that sum. The Treasurer must not pledge notes or deposit them in any bank as security for money. Banks will not be compelled to pay in notes more than £25 in one payment. A statement is to be prepared each month showing the notes issued and the reserve held. Power is given to the Treasurer to issue Treasury bills to any amount not to exceed the amount of the notes in circulation. Treasury bills may be disposed of within or beyond the Commonwealth, the money raised to he applied to the redemption of notes.