DETAILS OF THE MEASURE.

Star (Christchurch), Issue 4739, 2 September 1893, Page 6

DETAILS OF THE MEASURE.

[FEOil OUR BFECIAIi CORRESPONDENT.] 'ih • follow iug are the provisions of the Bank Not© Issue Bill, introduced by Mr Ward to-night:— Aa Act to make bank notes a firat charge on bank assets, and to temporarily enable the Governor to declare bank notes to be legal tender, and to provieb for the retirement of the same during -a limited time and under special circumstances. Clause I.— Title. Clause 2.— -In tbia Act the word "bank " mentis sny corporation, or incorporated company, carrying on within ths colony th* bueiaesß of banking, only. Part I. — Permanent enactment. Bank notes, Clauae 3. After the passing of this Act nil not«a payable on demand heretofore or he .-{after to be iEsued, circulat3d, or re-issued ia the colony by any bank under the authority of this, or any. other Act of this colony in that behalf, shall, to the amount of the issue authorised, be a first charge on all asaotß and property of that bank, being assets for payment of debtß or other obligations contractad, or entered upon, or due and payable ia the colony, ■ and shall ba payable iv gold only at the office of the bank at the place of issue of the said bank, anything contained in any other Act notwithstanding. Part II. — Temporary enactments. Proclamation by Governor. Clauae 4,— Save as provided by Section 7 tb c enactments in Part I of this Acfc shall have force for a period of twelve months only from the passing thereof, and if at the end of that period Parliament be not in session, then until the commencement of the next session of .. Parliament, and for two months thereafter, but; no longer. Clause 5. — The Governor-in-Council may from time to time as he thinks fit by proclamation in the Gazette and in at leash three newspapers in the Colony, declare that notes payable on demand by any bank therein named, and then or thereafter to be iasued, circulated, or re-issued within the said Colony under only lawful authority in that behalf, shall during the period limited by proclamation be everywhere within the taid Colony good and 1 legal tender of money to the amount therein expressed to ba ppyable, provided : that no proclamation ;t hall be made unless the Go vernor-in -Council ia satisfied that; as between the bank and it 3 creditors it; assets exceed its liabilities by at least the sum of the paid-up capital and reserved profits. Provided further that a baak shall pay all Buch notes of its own issue in gold on preoent»tion afe the office of the bank at the place of issue of the 3»id note 3 respectively, after the expiration of the period limited by any original proclamation Tinder this section, or by successive 1 proclamations thereunder, if more than 1 one, and the Governor-in-Council may require adequate security for the performance of this condition. Provided also that; no proclamation made under the authority of this section shall have force or effect beyond the time during which Part 11. of 1 this Act continues and remains in force. Clause 6.— Upon publication in the Gazette as aforesaid any proclamation made under this Act shall to the extent, and during the periodlimitedby proclamation or 1 by this Act, have the force of law, notwithstanding any provision in any Act, charter, or document wh&tsver. Clause 7.— At any time within six months ' after the expiration of the period limited by any original proclamation under Section 5, or by successive proclamations there--1 under, if there haveb3enmorethanone,the 1 Colonial Treasurer, on being satisfied that ; a bank note covered by any such proclamation has been duly presented for payment at the bank issuing the same, and has not been paid, shall without further 1 appropriation than this Act pay the aamo in goid to the iona fi.de holder, not being 1 the bank, who may present the eanio for payment at the Treasury. Clause B.— Upon the reque3t of the Colonial Treasurer, the managing director, manager, o? accountant of any bank shall make full and true answers to aucK written inquiries concerning the business and assets and liabilities of the bank as the Colonial Trea9urpr thinkß fit to make for tho purpose of the exercise of the discretion conferred on the Governor-in-Council by Section 5 of this Act, and shall verify the same by his statutory declaration. [The Act was passed through all it 3 stages in the House of Representatives last night.] .