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of the note issue (page 1) to $7,000,000 instead of half the issue of the Bank; with a proviso that there may be occasional issue in excess of $2,000,000 (with the consent of the Governor) each 15th day full account of such special issue being reported in the Special Treasury of which an account is kept.
As regards the substitution at home, he proposes a reserve in the hands of the Bank of 40% under lock and key. The industrial (Bank) contemplates something less than 50% all under lock and key.
5/ M. Ammanney,
M. Ammanney, not rather set out 25% in cash and 25% in sterling assets as proposed in the letter of the Bank to the Treasury (14701).
The special reserve should be made the subject of a "declaration of trust" declaring that it is held under undertaking of the Local Bank Manager and Officials for the special purpose of being issued to pay the Bank's notes as presented in case of sudden demands.
The 40 per cent under lock and key in the custody of the Bank should be taken in excess of the cash held by the Bank itself under its full control of not less than 33 per cent.