FEDERAL POLITICS.

Star (Christchurch), Issue 9910, 27 July 1910, Page 2

FEDERAL POLITICS.

AUSTRALIAN NOTES BILL. United Press As&ocintion—By Electric Telegrnph—-Copyright. (Received July 27, 9.15 a.m.) MELBOURNE, July 27,

In the Federal House of Representatives, the Australian Notes Bill was introduced by the Prime Minister, Mr Andrew Fisher, and read a first time. It provides that six months after proclamation, the banks will be. forbidden to issue or circulate notes. Notes may be issued.by any State, and sucli notes will be legal tender. A separate Bill will be introduced imposing a prohibitive tax on notes issued by the banks. Until arrangements can be made for printing notes, the Federal Treasurer may issue forms of State or bank notes with any alterations deemed necessary. The money derived frofn the issue may be held by the Treasurer in gold, or be used in redeeming notes, .or bo expended as Parliament directs. The Treasurer may the moneys derived or deposit them in a bank, or securities may be sold or disposed of by the Treasurer, the interest to be paid into the Federal consolidated revenue. The. gold reserve shall be equal to one-fourth of the value of the notes up to £7.000,000, and equal to the valuo of the notes issued above that amount. The Treasurer must not pledge the notes nor deposit them in any bank as security for money. The banks are not enamelled to pay in notes more than £25 sterling in one payment. A statement is to be> prepared each month, showing the notes issued and held in reserve. Power is .(riven f.o Treasurer to issue Treasury bills to any amount, not to exceed the amount of the notes in circulation. Treasury bills may be disposal of within orbevond the Commonwealth, the money raiVd to be applied to the redemption of notes.