ISSUE OF BANK NOTES

Dominion, Volume 11, Issue 69, 14 December 1917, Page 8

ISSUE OF BANK NOTES

SECURITY OF WAR-LOAN ADVANCES. Important regulations under tlio t Finance Act of last year are gazetted. The effect of the regulations is to remove one of tlio restrictions upon tho issue of notes by banks trading in Now Zealand. Following is tho text of the regulations:— 1. The limit of the note issue or every bank empowered by law to issjiei bank-notes in Now Zealand is herebyextended by adding to the total amount of all coin', bullion, and public securities held by that bank in New Zealand, the amount of all war-loan advances, as hereinafter defined, mado by that bank and for. the time being and from time to time outstanding. 2. The term "war-loan advances lheans any moneys wliioh have been lent bv a'bank on security for tlto purpose, of enabling the borrower to subscribe to the loan authorised to bt? raised by the Government, of NeSv Zenland under the War Purpose? Loan Act, 1917, and are debited to the borrower' in a special account kept in tho books of the bank in that behalf. 3. It sliall bo the duty of every bank to certify to tho Secretary of tho Treasury from time to time as required by him tho total amount of all warloan advances mado by tliat bank and for the time being outstanding; ana if any bank makes default in so certifying within twenty-eight days after being so required, the limit of the uota issue of that hank slial], so as such default continues, bo determined in the same manner as if no' war-loan advances had been made by it.