BANKING REFORM.

Tuapeka Times, Volume III, Issue 202, 14 December 1871, Page 7

BANKING REFORM.

, It will be remembered that about a month ago a select committee of the j House of- Representatives wwars r apppinted tb -consider the abovfr phbject. ijbey ,have reported, . recommenjiing the ad*opfi6h "by Parliament of tlie fallowing resolutions."- —1. That 'f^re.ign -companies carrying on..- fjh.e, business of banking in the colony s iould be requir&Oo set aside a de-_ "fined portion ©f-.tlh.eittiedpifca'l" for use iii the colony, and to come under "r found 'necessVry in the ~c iseToT local' nafrttd: 27"TlTat" "fTtSTex^" 'peclient, in order' to the growth of capital within. tfreTpTooy, as jsvelf as the local "development of rracre" a'ndj epitmerce by" the propef^Vswe of the* deposits belonging -to the people, encWnxgement should be giveji.tovvfl.rda, tfe establishment' of locals banks, to be

called " national banks," throughout Ihe colony; and with view"* a general Act, founded on the principles of the American National Banking Act. of 1864, In so .far as practicable, authorising the organisation of such banks, should be passed specially including provisions, of which tho following are the principal — minimum capital of suck banks £25,000, to be regulated by the population oi the district; one-third of the capital to be deposited in colonial stock with " the Colonial Treasurer; the company to receive circulation notes registered and countersigned by a G-overnment officer, equal in amount to *jO percent, of the bonds deposited, such notes to be circulated as money ; and a legal tende**, except for irterest on the public debt and redemption of national currency ; the rate of interest and discount to be regulated ; each bank to have in hand gold to the amount of at least fifteen per cent, of its notes in circulation and deposits ; one-tenth of the half-yearly profits to be" carried to a reserve fund until the same shall amount to twenty per cenfc. of the capital. 3. In order to diminish the necessity of keeping large amounts of gold at different places, a central clearing house association be established, whereby balances may be adjusted and settled throughout the colony, and that all bankers be members of the association.