THE STATE NOTE ISSUE.

Oamaru Mail, Volume XXXVIII, Issue 10517, 27 July 1910, Page 4

THE STATE NOTE ISSUE.

[By Electric Telegraph—Copyright.] (Per Press Association.) Received July 27, at 9.15 a.m. Melbourne, July 27. In the House of Representatives the Australian Notes Bill was introduced and read a first time. Six mouths after the proclamation a bank is forbidden to issue or circulate notes issued by any State, such notes being legal tender. A separate Bill will be introduced imposing a prohibitive tax on notes issued by banks. Until arrangements can be made for printing notes the Treasurer may issue forms of State or bank notes with the alterations deemed necessary. The money derived from the issue may be held by the Treasurer in gold or be used in redeeming notes or be expended as Parliament directs. The Treasurer may invest moneys derived or deposit them in the bank or securities. Securities may be sold or disposed of by the Treasurer, the interest to be paid into the Federal consolidated revenue; the gold reserve to be equal to one-fourth the value of the notes up to seven millions and equal to the value of the notes above that sum. The Treasurer must not pledge the notes or deposit them in any bank as security for money. Banks are not compelled to pay in notes more than £25 in one payment. A statement is to be prepared each month showing the notes issued and the reserve held. Power is given the Treasurer to issue Treasury bills up to any amount not to exceed the amount of the notes in circulation. Treasury bills may be disposed of within or beyond the Commonwealth, the money raised to be applied to the redemption of notes.