BANK NOTES.

Auckland Star, Volume XLV, Issue 186, 6 August 1914, Page 6

BANK NOTES.

A LEGAL TENDER.

GOVERNOR'S PROCLAMAnON.

The following; proclamation has been tss.ied by Ins Excellency the Governor under toe Banking Amendment Act Which passed into law yesterday 'del Clanng bank notes to be legal tender from August 6 to September 6:— Declaring notes of certain banks to be a legal tender. Liverpool, Governor A. proclamation. Whereas by section 2 of the Banking Amendment Act, 1914 jt - 9 enacted that the Governor-in-CouncM may. by proclamation, declare that tie notes payable on demand by any bank a-id then issued or thereafter to be issued or re-issued within New Zealand, under aa» lawful authority in that behalf, shall during the period limited by the prorta! mation, be everywhere within New Zea land a good and legal tender of money to the amount therein expressed to be payable; and whereas occasion for the exercise of such power in respect of the hanks named or described in the schedule hereto has now arisen; and whereas the Governor-in-Council is satisfied in pursuance of the requirements of the said Act that in respect of each of the said banks which has its head office in New Zealand the assets of that bank exceed its liabilities, as between the bank and its creditors, by at least the amount of its paid-up capital, and that in respect of each of the said banks which has its head office out of New Zealand the assets of that bank within New Zealand exceed its liabilities therein as lietween the bank and its creditors. Now, therefore, his Excellency the Governor of the Dominion of NewZealand, in exercise and pursuance of the powers and authorities conferred upon him by section 2 of the Banking Amendment Act, 1914, and of all other powers and authorities enabling him in that behalf and acting by and with the advice and consent of the Executive Council of the said Dominion, doth hereby declare that the notes payable on demand by any of the banks named or described in the schedule hereto and now issued or hereafter to be issued or re-issued within New Zealand under any lawful authority in that behalf, shall on and after the sixth day of August, 1914, until and including the sixth day of September, 1914, be everywhere within New Zealand a good and legal tender of money to the amount therein expressed to be payable. THE SCHEDULE. The Bank of New Zealand. The National Bank of New Zealand (Ltd.). Tlie Union' Bank of Australia (Ltd:). The Bank of Australasia. The Rank of New South-Wales. The Commercial Bank of Australia (Ltd.). Given under the hand of his Excelleny the Right Hon. Arthur William De Brito Savilc. Earl of Liverpool, Knight Grand Cross of the Most Diirtinguished Order of St. Michael and St. George Member of the Royal Victorian Order/ (•overnor and Commander-in-chief in and over His Majesty's Dominion of Ne.tr Zealand and its dependenies and iMued under the seal of the said Dominion at the Government House at Wellington this sth day of August, in the year ot Our Lord, one thousand nine hundred and fourteen. Issued in Executive Council, J. F. ANDREWS, c '*erk of the Executive Council. "God Save the King." NO PJXANrJLAL LtMAHKESS. (RESTRIicrriOiNS "o^WoTJHiDRAIWAIiS. IMPOSED BY GOVERNMinN SAVINGS BAfNIL Inquiry at the Auckland banks this morning indicated that despite the war. fever, Auckland people have not become the least excited in regard to the financial position. The announcement thit bank notes ar e to be accepted as legal tender is regarded as a wise provision under war conditions. . Meantime matters from a 'banking view point proceed smoothly, and 'bank managers expreM keen satisfaction that business people have taken such a common sense view of the position. From the Savings ißanks equally satisfactory reports are made. The Government Savings Bank intends -putting into operation certain regulations governing . the matter of withdrawals, but the 'Auckland Savings Bank tfinds business quite normal, and does not contemplate introducing any special rules relating to .bank business. On inquiry this morning, a "Star" representative ascertained that there had been practically no variation from ordinary business in regard to - deposits and withdrawals. There had certainly been no excess of withdrawal*, ' and at present no restrictions were contemplated. Exercising the authority given by sec- • tion 71 of the Post and Telegraph Act, the Postmaster-General has given in- ! struetions that depositors in the Poet Office Savings Bank intending to mats withdrawals must give seven days* notice in the case of amounts exceeding £2. Withdrawals not exceeding v £2 may (be made from both chief and . sub-offices at intervals of not less than ; seven days without notice. This regulation is now in operation. It has. 'been considered advisable to plate, this restriction upon the withdraw**} from 'the bank in order #o counteract any immediate tendency to panic,'and i to equalise the distribution of payments • by the bank. Forms by which the re- ! ' quired notice is to be given may be ob tamed at any branch of the bank. The financial position of the Savings ' Bank at December 31, 1913, is shown by' the annual report recently presented to' Parliament by the Postmaster-Gener**.. > The balance to the credit of depositor* was £17,131,413 10/4. Against this .li*/ _ • bility the bank has assets comprising ,' securities amounting to £17.033,638 9/7 " and a balance uninvested of £349/B*-. V, a total of £17,432,662 10/7, sho*N" \ , an excess over liabilities of £30l^« • 14/3. The funds of the bank are, iritli the exception of a very small stun, "*» invested in New Zealand GovernO*"' i stocks and debentures, and it is alsoWpi ported by a State guarantee. The Hon. Heabon (Rhodes, Postmttteri General, (we are advised by Press Am°* x ciation telegram) 6ay s there is ho <*■ s cessive desire apparent on the pirt§s i depositors to withdraw money from th* • Savings Banks, and he paints out th** - there is no cause to do so. The depo*'- 4 - arc guaranteed by tho Government, MS , - are as safe ns possible. The G° v ' ■ eminent has the power to re I • | quire seven days' notice ,'s'."■ • j withdrawal, and to prevent hurried * n ° "Jiieedla-s action. Instructions h* rc i | been given that for amounts of M*re r than two per week this notlW., I I must be given. The Minister says W£l | ; i* really iv the interest of depositor* ' ' themselves. 'He is aware that in times of excitement money is sometime* ne '" , ''_ ■ ously withdrawn, put in stockings; or' holes in the ground, and frecjuentlg" atm