153
(3)
Nor do My Lords think it necessary to raise any
objection to the repeal of the provision in the existing
Ordinance under which the Bank are obliged to keep at each
of their establishments coin and bullion to the value of at
least one third of the bills and notes issued from there and
for the time being in circulation.
This provision was in
its origin a concession, as it replaced an obligation imposed
on the Bank by the Ordinance of 1866 to keep at their head
office that proportion of all the bills and notes issued from
each establishment. But both when the stipulation was originally imposed and when it was modified there was no
reserve specifically held against the note issue.
ordinary course of business the Bank must in any case keep a sufficient supply of till-money at each of their establishments, and with the note issue properly secured My Lords do not consider it necessary that the existing obligation should continue.
In the
(4). As regards the "custodian" scheme and its application
to bullion, it seems to My Lords that the practical difficulties
Presumably
will be greater in the case of bullion than of coin.
whatever the exact details of any scheme that may eventually be
adopted the Consular officer or other custodian must be in a
position to certify that the reserve in his custody is of such
an amount or has been increased or diminished by such an amount
on such an occasion. With coin this should not be too onerous
a duty, but it is questionable whether an officer could be
expected to ascertain in all cases the value of bullion deposited
with him.
I am,
sir,
Your obedient Servant,
Or Nainagen
will
!