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time not less than three months, it is the practice to place such sums at fixed deposit in one or other of the local Banks, with each of which Banks it is conditioned that the deposit will draw interest at the rate of five per cent per annum for periods of three, six, nine or twelve months, irrespective of the actual period for which it is deposited, and should money deposited for twelve months be required after the expiration of three months, it can be cashed and receive interest at the rate of five per cent upon a week's notice being given.
I do not think there is any actual confusion between fixed deposits and current account. They are kept carefully distinct in the accounts and in the weekly returns, and it is only from the facilities afforded by the Banks for cashing fixed deposit, that the Government is able to have more money placed at fixed deposit than would otherwise be possible. Moreover although this mode of treating fixed deposits is undoubtedly exceptional, and is also very convenient to the Government, the consideration in return is merely sentimental and simply consists of the prestige, such as it is, of the connection of the Bank with the Government.
The Treasury has not hitherto been kept informed by other departments of the dates when payments to be made in England may be expected to be demanded, the only drafts of the expectation of which it is cognizant being those for subsidiary coins, which arrive at regular intervals, and against which provision can be made.
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