A NEW BANK

Northern Advocate, 5 July 1928, Page 9

A NEW BANK

t BILL TO BE INTRODUCED. t PEOVISIONB~EXiPLAINED. (From Our Parliamentary Special.) 1. WELLINGTON, This Day. A private Bill, to provide for the t incorporation of a new bank of issue, s to be known as the London and New c Zealand Bank, Ltd., with a capital of . £2,000,000, is to be introduced into Parliament shortly by Mr J. G. Eliott. The Bill states that by a deed, dated . November 23, 1027, certain persons . have formed an association styled the » London and New Zealand Bank Assoi ciatiou for the purpose of carrying on business in banking in Ne*w Zealand. It is provided in the bill that if, before December 31, 1933, the GovernorGeneral is satisfied that the members of the association have subscribed themselves to pay not less than £1,000,000 towards its funds, a Proclamation shall bo issued incorporating the bank. 1 There arc to be seven provisional di- ! rectors and upon the compilation of_ 1 the register of shareholders the bank shall be entitled to commence business. Authority is given to the bank to issue and circulate bank notes in New Zealand of the denominations of 10s, £l, £5, and any multiple of £5. The total amount of promissory notes I payable in New Zealand shall not, at j any time, exceed the amount of coin I bullion and public securities Which shall for the time being be held by the bank within New Zealand, nor shall the proportion of coin be less than one-third of the amount of coin, bullion and public securities held by the bank. Note circulation shall cease in ease of the suspension of specie payments on demand for 60 days or in case of failure to observe the provisions of the Banking Act. A penalty of £IOO shall be paid for every day on which the total amount of bank notes issued exceeds the authorised totnl. The general liabilities of the bank are to be limited to three times the amount of coin, bullion and public . securities held by it within the Dominion. The capital of the bank is to be divided into shares of the nominal value of £1 each and the directors may allot them to such persons and on such terms and conditions as they think lit. Interest on overdue calls, or instalments, shall be payable at the rate of 8 per cent. per annum.

It is understood that no opposition t is being shown by the Government to the bill, and Mr Eliott states that one of the objects of the bank is to assist in providing further financial facilities for those engaged in the primary industries of the Dominion.