THE BANK NOTE BILL.

Temuka Leader, Issue 2551, 5 September 1893, Page 2

THE BANK NOTE BILL.

Wellington, Sept. 2. The following are the provisions of the Bank Note Issue Bill which was introduced by Mr Ward last night, and passed through all stages in both Houces :

An Act to make bank notes a first charge on bank assets, and to temporarily enable the Government to declare bank notes to be legal tender, and to provide for the retirement of the same during a limited time, and under special circumstances.

Clause I.—Title. Clause 2. —In this Act the word " Bank " means any corporation or incorporated company carrying on within the colony the business of banking only. Part I.— Permanent enactment—Bank notes.

Clause 3. —After the passing of thi Act all notes payable on demand, heretofore or hereafter to be issued, circulated, or reissued in the colony, by any bank under the authority of this or any other Act of this colony in that behalf shall, to the amount of issue authorised, be a first charge on all assets and property of that bank, being assets for the payment of debts or obligations contracted or entered upon or due and payable in the colony and shall be payable in gold only a* the office of the bauk at tne P lace of issue of the sa}d note? respectively, anything contained in any other Act noi withstanding. Part ll.—Temporary enactments—Proclamation by the Governor. Clause 4.—Save as provided by section 7, the enactments in Part 11. of this Act shall have force for a period of twelve months only from the passing thereof, and if at the end of that period Parliament be not in session, then until the commencement of the next session of Parliament, and for two months thereafter, but no longer. Clauso s.—The Governor-in-Council may from time to time, as ho thinks fit, by proclamation in the Gazette and in at least three njewspapera in the colony declare that notes payable o» by

"ny bank therein named and then or hereafter to be issued, circulated, or ressued within the said colony under any awful authority in that, behalf, shall during the period limited by the proclamation be everywhere within the said colony good and lrgal tender of money to the amount therein expressed to be payable; provided that no proclamation shall be made unless the Governor-in-Council is satisfied that as between the bank and its creditors its assets exceed its liabilities by at least the sum of the paid-up capital and reserved profits; provided, further, that the bank shall pay all such notes of its own issue in gold on presentation at the office of the bank at the plnce of issue of the said notes respectively, after the expiration of the period limited by any original proclamation under this section, or by successive proclamations thereunder if more than one, and the Governor-in-Council may require adequate security for the performance of this condition ; provided also that no proclamation made under the authority of this section shall have force or effect beyond the time during which Part 11. of this Act continues and remains in force.

Clause 6.—-Upon the publication in the Gazette as aforesaid, any proclamation made under this Act shall, to the extent and during the period limited by the proclamation or by this Act, have the force of law, notwithstanding any provision in any Act, charter, or document whatever.

Clause 7.—At any time within six months after the expiration of the period limited by any original proclamation under section 5, or by successive proclamations thereunder, if there have been more than one, the Colonial Treasurer on being satisfied that a bank note covered by any such proclamation has been duly presented for payment at the bank issuing the same and has not been paid, shall without further appropriation than this Act pay tho same in gold to tho bona fide holder, not being a bank, who may present the same for payment at the Treasury. Clause B.—Upon the request of the Colonial Treasurer, the managing director, manager, or accountant of any bank, shall make full and true answers to such written inquiries concerning the business and assets and liabilities of the bank as the Colonial Treasurer thinks fit to make, for the purpose of the exercise of the discretion conferred on the Governor-in-Council by section 5 of this Act, and shall verify the same by his statutory declaration."