CO882-(8-9) — Page 195

PUBLIC RECORD OFFICE

Maference :-

TILICO. 882

PUBLIC RECORD OFFICE, LONDON

ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC- COPYRIGHT PHOTOGRAPH-NOT TO

Imue of notes in exchange for gold.

Issue of gold in exchange for notes.

Invest- ment por- tion of

Note

Guarantee

fund.

Deprecia-

151

portion of the Fund to be reminted as aforesaid and the nominal value of the new coins actually received back from His Majesty's Mint shall be made good to the Commissioners from the General Revenue of the Colony.

(4) In the event of the reminting of any part of the coin portion of the Fund as aforesaid the monthly abstracts published in the Gazette by the Commissioners in accordance with Section 10 of the principal Ordinance shall include and show separately in the statement of the coin portion of the Note Guarantee Fund the nominal value of the coin taken out to be reminted.

t78-(1) Notwithstanding anything in this Ordinance contained it shall be lawful for the Commissioners to issue Notes in exchange for gold received by the Commissioners at Singapore at a rate of exchange to be notified by an Order of the Governor in Council with the previous approval of the Secretary of State and the Commissioners may invite tenders for the issue of Notes in Singapore against Tele- graphic Transfers in favour of the Crown Agents for the Colonies in London and may at their discretion accept any tender which affords sufficient margin above the rate fixed by such Order in Council to cover all charges including interest which may be incurred in remitting to Singapore the equivalent in gold at the fixed rate of the Notes issued for such tender.

(2) The sum so received in gold shall form part of the Note Guarantee Fund and may be invested by the Commissioners in accordance with the provisions of this Ordinance or used by them for the purchase of silver to be minted into Straits Settlements dollars in accordance with such instructions as may be issued by the Secretary of State.

Provided that the whole of the profit on such minting shall be carried to a separate Gold Reserve Fund and not form part of the Note Guarantee Fund.

7c. Notwithstanding anything contained in Sub-section (2) of the last preced- ing Section it shall be lawful for the Commissioners whenever they shall think fit so to do to issue gold in exchange for notes at the rate of exchange notified by Order of the Governor in Council made under the provisions of the last preceding Section and the Commissioners may accept tenders for the purchase of Telegraphic Trans- fers payable in London by the Crown Agents which afford a sufficient margin below the rate fixed by such Order in Council to cover all charges including interest which may be incurred in remitting to London the equivalent in gold at the fixed rate of the notes received for such tender.

Investments and Depreciation Fund.

8.(1) The investment portion of the Note Guarantee fund may be invested in Indian Government securities and such securities of the Government of the United Kingdom or of the Government of any British Colony other than the Straits Settle- ments or in such other securities as may from time to time be approved of by a Secre- tary of State. Provided that not more than one-half of such sum shall be invested in Indian Government securities except by the express sanction of the Secretary of State.

(2) All such investments shall if made in England be made in the joint names of the Crown Agents for the Colonies and of such other officers or persons as a Secre- tary of State shall appoint as Trustees on behalf of the Commissioners. Invest- ments made in India in Indian Government securities shall be made in the names of the Commissioners.

(3) The securities shall be applicable for the payment of currency notes and for no other purpose.

(4) The income derived from securities shall be applied:--

(a) in paying the expenses of and incidental to the execution of the Ordin-

ance; and

§(b) Subject to the provisions of Section 9 and Section 10 hereof in the pay- ment of the net balance.after the payment of the said expenses to a Depreciation Fund.

9.-(1) A separate account shall be kept of the Depreciation Fund and the tlon fund. income of the fund shall be invested by way of accumulation so as to form part of

• Sub-section (5) in original ordinance.

† Inserted by Ordinance I of 1906. Inserted by Ordinance XXIII of 1906.

{ Clause (b) was substituted for the original Clauses (b) and (c) by Ordinance V of 1906.

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the fund; but save as aforesaid or as is otherwise expressly provided by this Ordi- nance the Depreciation Fund shall form part of the investment portion of the Note Guarantee Fund and the provisions of this Ordinance shall apply thereto accordingly.

* (2) Whenever the Governor satisfies a Secretary of State that the Deprecia- tion Fund is not less than ten per cent. of the investment portion of the Note Guarantee Fund and that any depreciation of market value below the cost price of the securities forming the investment part of the Guarantee Fund has been made good and that it is unnecessary for the present to increase the Depreciation Fund he may order the annual payment to the Depreciation Fund of the said net balance to be discontinued and the said net balance to be paid to the General Revenue of the Colony. If at any time thereafter the Governor is of opinion that it is neces- sary to increase the Depreciation Fund the Governor may order that the whole of or any part of the said net balance shall be again paid into the Depreciation Fund. Accounts and Expenses.

†(10-(1) The accounts of all transactions of the Commissioners under this Accounts Ordinance shall be audited in every year by such persons and in accordance with of Commis such regulations as a Secretary of State directs.

(2) An abstract of such accounts shall be forthwith after such audit published in the Gazette.

(3) If it appears upon such audit that the market value of the securities form- ing the investment portion of the Note Guarantee Fund (including the Depreciation Fund) is less than the amount of coin taken for investment from the Note Guarantee Fund the amount of the deficiency shall be paid into the Note Guarantee Fund out of the General Revenue of the Colony at such times as the Governor may with the sanction of the Secretary of State direct. Provided that the amount so advanced from general revenue may be recovered hereafter if and when the value of the securities is found to exceed the amount of coin taken for investment as aforesaid.

(4) The Commissioners shall on the first of each calendar month or if that day be Sunday or a public holiday on the next day make up and forthwith publish in the Gazette an abstract showing:-

(a) the whole amount of currency notes in circulation on the said day and the average amount in circulation during the month ending that day; (b) the amount of the coin portion of the Note Guarantee Fund on the said

day and the average amount during the month ending that day; and (c) the nominal value of price paid for and the latest known market price of the securities forming the investment portion of the Note Guarantee Fund.

(5) The amount of notes in circulation at a particular date shall be the total nominal amount of notes issued to the public by the Commissioners prior to that date after deducting the total nominal amount of notes received by the Commission- ers prior to that date.

(6) The said abstracts shall from time to time and at least once a quarter be verified in accordance with regulations made by a Secretary of State by a board of survey appointed by the Governor.

sioners.

11. All expenses of and incidental to the execution of this Ordinance shall so Expenses. far as not defrayed out of the income of the Note Guarantee Fund be paid out of the General Revenue of the Colony.

Penalties.

Penalty on 12. If any Commissioner issues or is a party to issuing any currency note other- Oommis wise than in accordance with the Ordinance or authorises or is a party to authoris- sioners. ing the application of any portion of the Note Guarantee Fund for any purposes not authorised by this Ordinance or otherwise acts contrary to his duty under this Ordinance he shall be guilty of an offence and shall be liable on conviction to im- prisonment of either description for a term not exceeding three years or to a fine not exceeding ten thousand dollars or to both such punishments.

13. (1) If any person with intent to defraud forges or alters any currency note Forgery of

or knowing any note purporting to be a currency note to be forged or altered utters currency

• Substituted for original Sub-section by Ordinance V of 1906.

† As amended by Ordinances XIII of 1903 and V of 1906.

81104

US

notes.