380
of the Bank failing. They understand that the assets of the Bank must be realized, that the demands of the note holders
must be first satisfied. If this be the
Case
my
Lords
presume
that it would
rest with the Liquidator to pay a dividend to the note holders from time to time, and that considerable delay might ensue, perhaps of years before the Note holders were paid in full. They do not understand that the Cash in the possession of the Bank at the time of failure would be appropriated at once to payment of the notes, and that the procceds of the assets as realized would be forthwith applied in like
manner until the demands
Noteholders are.
would
of
the
satisfied. My Lords
further be
glad if you
would
point
opinion
point out the
difference in
your -between the manner in which the quoted Section would operate, and that in which the Section of Sir Stafford Northcote's Banking Act of 1879 relative to the unlimited liability of Banks under the Companies Acts for their notes would operate.
The Hong Kong and Shanghai Bank offer if the proposed privilege of recuing
one dollar notes be granted to earmark and deposit in a separate
vault, the keys of which would be -kept by the Colonial Treasurer, a special reserve of Mexican dollars the full
extent of its
equal
to
its one dollar notes
in circulation. This special reserve
would be, they state, in case
of
to
suspension of payment inalienable