BANK NOTES LEGAL TENDER.

New Zealand Herald, Volume LX, Issue 18295, 11 January 1923, Page 8

BANK NOTES LEGAL TENDER.

EXTENSION OF PROVISION. ORIGIN OF CONCESSIONS. : : [BT TELEGRAPH.— ASSOCIATION.] - r J WELLINGTON. Wednesday. i Referring to the proclamation in the ] Gazette on December 21, 1922, declaring j "-. the notes of. certain Banks to be legal] "\ ■ tender until: January 10, 1925, the Min- j - ister for Finance states that this is I merely following oat the provisions of Section 66 of the Finance Act, 191?, wherein it is enacted that notes shall be ?egal tender up to a date fixed ,by the Governor'-General-in-Council,' such .■-. date not to be earlier than .five years after She termination of the war. " The official date of the termination of the; war' was fixed fay proclamation and gazetted on February 23, 1920, as January 10, 192). The last proclamation de- - claring notes to be legal tender was gazetted on December 4, 191?, and covered the period of five years which expired on December 31, 1922. The proclamation extending the period to January 10, 1925, was therefore necessary to carry out the direction of Parliament as ". enacted in 1917This legislation rteras the outcome of arrangements made 1 with the associated banks of Now Zealand in that year when a £12 r OOO,OOO war loan was placed on the market whereby; in consideration of the banks underwritins: at least £5,000,000 of the loan and making advances to their clients to enable them to invest in the loan, the Government agreed to introduce legislation to further increase the limit of the issue of bank notes ip the extent of the advances to clients for investment in the war loan and to enable the bank notes on the basis of the extended issue to be made legal tender for a period of five years after the conclusion of the war. . , .