FEDERAL BANK NOTES.

Evening Post, Volume LXXXI, Issue 22, 27 January 1911, Page 7

FEDERAL BANK NOTES.

THE ISSUES TO DATE. By Telegraph.— Press Association.— Copyright. MELBOURNE, 26th January. The number of Federal notes issued to date is 1,550,376, with a value of £3,756,691. BANK NO u rE TAX. In connection with its banking proposals the Commonwealth Government intends to impose a tax on notes issucl by the banks. It was f bated last week by the Federal Treasurer (Mr. Fisher) that the Act passed by Parliament providing for a tax of 10 per cent, on all notes issued by banks would come into operation on Ist July. The tax will be levied (reports the Argus) upon all notes issued or reissued after tho Act comes into operation. It will not affect the remnants of previous issues, which may not have been presented for redemption, but as these come into the banks they will bo withdrawn, and so tho last traces of bank issues will disappeai, leaving the Commonwealth notes the solo paper currency of the country. During tho last session of Parliament, when tho Bill was before the House, Mr. Fisher said that it would not be proclaimed m operation earlier thair Ist March, but it has been found desirable by the Treasury officers to postpone its proclamation until the later date, which has now been decided upon. It is understood that the Treasury has found the demand for Commonwealth notes greater than was anticipated, and by allowing a, little longer life to the bank issues hopes to find relief from a difficulty which would otherwise prove harassing to them, in view of the limited supplies of bank paper on hand. Paper sufficient for 2,000,000 notes is now on the water, consigned lo the Federal Treasury.