THE FEDERAL RILL

New Zealand Times, Volume XXXIII, Issue 7943, 28 October 1911, Page 5

THE FEDERAL RILL

COMMONWEALTH BANK DETAILS OF THE SCHEME. By Telegraph—Press Association—Oopyrieht (Received October 27, 11.20 p.m.) MELBOURNE, October 27. The Bill to bo introduced for establishing a Commonwealth Rank provides that,the capital of tho bank is to .be raised by tho issue of bonds. An advance may bo mads by tho Federal Treasurer from tho consolidated revenue to enable tho bank to defray tho expenses incidental to its establishment and to raising sufficient capital to carry on with. Tho money sc advanced is to bo, repaid. The bank is to bo managed by a Board of Directors consisting of the governor of the hank, tho deputy governor, and a director who is to bo appointed by tho Governor-General of tho Commonwealth. Half of the net profits of the bank aro to .bo placed to a reserve fund and half to a redemption fund for tho repayment of moneys advanced by tho treasurer and the redemption' of bonds. If the- funds exceed tho amount of bonds in circulation, tbe excess may bo used for the redemption of Commonwealth debts or State debts taken overby tho Commonwealth. Tho bank may invest money held by it in Government securities, approved by the Federal Treasury, in loans on land security, or in other prescribed manner. The Board of Directors is empowered to establish a savings bank.