2.
The Note Issue.
メ
The issue of notes is confined to three Banks
which are restricted in the amount they may issue as
follows:
Authorised Issue
43
Statutory Security.
Chartered Bank
$25,000,000
Hong Kong Bank
Mercantile Bank
$30,000,000 with an unlimited excess fully secured by coin or bullion
Equivalent of the Bank's Paid up Capital, which is £1,050,000 with an unlimited excess, fully secured by coin, when, in the opinion of the Governor in Council a temporary emergency exists.
Coin or securities
equal in value to one- third of $8,000,000 Coin, bullion or secur- ities equal in value
to notes in circulation in excess of $8,000,000 (It is the practice, though not a legal obligation for the Chartered Bank to deposit at least one- third in coin of notes in circulation).
Coin or securities equal in value to $23,333,333 and for any excess over
$30,000,000 coin or bullion equal to the whole value of such excess. Whatever the total amount of notes in circulation the security of coined dollars shall not be less than one-thirà
Securities equal in value to five per cent over the amount of notes in circulation or legal tender coin to the full amount. Any excess of the authorised issue to be fully covered by coin
A stamp duty of 1% is charged on all issues.
The