Proceeds of
bills.
Amounts and period of currency of bills.
Repayment of bills.
Cancellation
of repaid bills.
182
4. The procceds of the issue of the Treasury bills shall be paid into the general account of the Colony with the Crown Agents for the Colonies.
5. Every Treasury bill issued under this Ordinance shall be for the sum of £1,000 or a multiple of £1,000. and shall be payable at par at such time or times as the Governor or the Crown Agents for the Colonies on his behalf shall before the issue of such Treasury bill fix and determine, but not later than one year from the date of issue.
6. The Governor shall appropriate out of the general revenues of the Colony the necessary sum to pay the principal represented by the Treasury bills and shall remit that sum to the Crown Agents for the Colonies in London at. such time as will enable them to pay the principal at their office in London when the Treasury bills fall dne,
7. Upon repayment of the principal moneys represented by the Treasury bills, the bills shall be delivered up to the Crown Agents, to be by them cancelled and forwarded to the Government of Hongkong.
Objects and Reasons.
1. Au experiment which was recently made of issuing Treasury bills in London on behalf of a Colonial Govern- ment proved very successful, and the Crown Agents have represented that it is desirable for several reasons that Colonial Governments generally should have power to issue such bills, Treasury bills often prove a convenient method of obtaining a temporary loan.
2. The Crown Agents point out that as a loan is usually required to pay for works of construction, the execution of which is expected to take some years to complete, it is far more economical, instead of issuing a loan at once for the whole amount, to borrow the money in instalments as re- quired, at a comparatively low rate of interest, either by obtaining advances through the Crown Agents from other Colonies, or failing funds for such advances, by the issue of bills, and only to issue the loan when the works are well under way and when a more exact estimate of their cost can be framed.
3. This bill is therefore introduced in order to enable the Government to borrow money by the issue of Treasury bills in London should occasion arise. It is complementary: to another bill which is being introduced to give the Government power to borrow money by the issue of Treasury bills in Hongkong. Both the bills are intro- duced on the suggestion of the Secretary of State. They have been adapted from a draft prepared by the Crown Agents in consultation with the legal advisers of the Secretary of State.
9th March, 1926.
J. H. KEMP,
Attorney Gen ral,