Short title.
Inse of
bank notes to
148
GIBRALTAR
1.
This Ordinance may be cited as "The Bank Note Ordinance, 1914."
2.
It shall be lawful for the Government of Gibraltar to issue forthwith Government bank notes to an amount not exceeding £250,000, such bank notes to be for £50, £5, anament not £1, 105., and 28. sterling each, and to be redeemable at par value at such time as the Governor may hereafter declare by Proclamation to be made by him and pub- lished in the Official Gazette,
exceeding £260,000.
Dednition of ank note.
8. Each note shall be a promise by the Government to pay bearer the amount thereof, at a date to be fixed hereafter by the Governor by Proclamation to be pub- lished in the Official Gazette, and shall stand secured as a charge on the assets and general revenue of the Colony.
Each such note shall bear the signature of the Colonial Treasurer of Gibraltar. 4. A note or notes so issued shall be a legal tender to the amount expressed in tender to any such note or notes, and shall be taken to be valid as a tender to such amount for all
sums on all occasions on which any tender of money may be legally made.
bank note to be lagal
amount sub- Jest to osrtain provisions.
Ordinance, when to come into operation
Provided, nevertheless, the Governor shall have power by notice under his hand, to be published in the Official Gazette, to fix with regard to the payment of any amount the proportion of such amount which shall be payable in such notes and in specie respectively.
5. This Ordinance shall come into operation forthwith.
Passed 5th August, 1914.
149
GIBRALTAR
which temporarily to meet all requirements, and so retain possession of the specie, was, I submit, the only safe course to pursue.
The result, so far, proves the wisdom of His Excellency's action in this matter. The run on the Government Savings Bank has been stopped, and deposits are coming in, while the Anglo-Egyptian Bank has been able to meet the demands of the Government Departments and the public without unduly disturbing the commercial interests of the place. The issue of the notes through the Anglo-Egyptian Bank has restored confidence and served to popularize the issue, and they appear to be accepted by the public without demur.
A statement (marked B) is attached, showing the effect of the note issue on the transactions of the Government Savings Bank. Up to this day's date 37,000 notes have been issued to the Anglo-Egyptian Bank, representing a sum of £50,010.
A. C. GREENWOOD, 14th August, 1914.
Colonial Treasurer.
STATEMENT "A.” ANGLO-EGYPTIAN BANK.
Savings Bank Withdrawals and Deposits.
Amount of Notes Given.
PUBLIC RECORD OFFICE
Reference :-
EPER CO. 885
· COPYRIGHT PHOTOGRA
NOT TO
24 PUBLIC RECORD OFFICE, LONDON
ALLY WITHOUT PERMISSION OF THE
BE REPRODUCED PHOTOGRAPHIC-
COLONIAL TREASURER to COLONIAL SECRETARY.
MEMORANDUM.
In connexion with the recent issue by the Colonial Government of bank notes, I have the honour to submit the following remarks for the consideration of His Excellency the Governor,
By Command,
Notices Given on
Maturing.
H. A. BYATT,
Pecetas.
Sterling,
Colonial Secretary.
25th July 27th
4th August Nil
11
28th
"
6th August
29th
7th
"
*
30th
8th
"
9,460,00
3,609-00 5,250.00 30 0 0 22,723-001,912 O 0
£ 8. d. 22 0 0
Amounts Withdrawn.
Amounts Deposited.
Posetas.
Sterling.
Pesetas.
Starling.
£
息。
d.
I
12,428-70
17
0 0
5,227.36
50
8 4
40-00
28,248-58 | 1,889
3 4
12.00
31st
10th
13
11
1st August
11th
223,218-00 7,314 0 0 338,149.00 5,455 0 0
172,049-04|6,574 10 10
25-00
147,007-86 3,156 7 11 1,940-00
*12th 31
+101,385-68 71 9 %
*18th
+28,154:58 284 13 9
138-00
#14th
*
*15th
R
6th August...
17th
7th
17th
11
*
8th
18th
..
10th
20th
498,358-00 3,855 3 0 124,270.00 283 15 0 28,316-00 41 0 0 22,978.00 145 0 0
+3,554.60 270 10 0 +6,818.24 208,682.56 1,298 1 1
20-00
11
11th
21st
6,337.00
169 10 0
19th
22nd
#
27,396-00
2 19 0
14th
24th
818.00
14th
24th
27,902.40
25th
2,500-00
17th
27th
"
1,558.00 50 0 0
At the moment of the outbreak of the war in Europe and the consequent crisis in the money markets all over the world the local conditions were as follows, viz. :— The balances standing to the credit of the various Colonial Government accounts at the Anglo-Egyptian Bank and the cash in the hands of the Colonial Treasurer amounted in all to £12,000.
The liabilities of the Government on savings bank alone amounted to £159,000. Though this amount was fully secured by investments in England and local loans to the Sanitary Commissioners, none of these securities could have been realized at the moment, even at a heavy loss.
Withdrawal notices were immediately received amounting to some £14,000, and were coming in daily at a rate which clearly indicated that the withdrawal of the bulk of these deposits might well be expected.
It was understood that the Anglo-Egyptian Bank had at its disposal cash to the amount of something like £250,000 and pesetas 800,000 with which to meet the requirements of the Imperial and Colonial Governments and the demands of their local customers, including a large savings bank business of their own representing deposits of £30,319 and pesetas 2,576,338. A run was made on their savings bank deposits, the magnitude of which, and the effect upon it by the issue of the Govern- ment bank notes on the 6th August, are shown in the accompanying statement (marked A).
To have issued bank notes for Government purposes alone would have served to check the run on the Government Savings Bank, but in that case the Anglo- Egyptian Bank would have been compelled to pay in specie, which would have passed into the hands of speculators, and the whole stock of gold and silver would have disappeared in a few days, or the bank would have had to close its doors, thus bringing about commercial dislocation. Creditors would have pressed the bank for their deposits, and the bank, on the other hand, would have required immediate payment from its debtors, and the result would have been a state of financial chaos.
It became necessary, therefore, for the Government to support the bank in the interests of the whole community.
The issue of Government bank notes on the security of the assets and general revenue of the Colony, and the advance to the bank of £100,000 in these notes with
15th
STATEMENT "B."
Government Savings Bank Withdrawals.
Nation Given on
Maturing.
ני
Actually Drawn.
Deposits Paid in.
d.
.. d.
A ■. d.
80th July
81st
6th August 7th
D
02
1st August
Bch
D
3rd
10th
550 0 0 700 0 0 4,500 0 0 4,000 0 0
4th
11th
2,600 0 0
"J
5th
12th
1,500 0 0
11
13
350 0 0 663 17 0 1,007 11 9 0 1,094 0
633 5 6 882 2 6
21 0 998 17
0
0
173 0 0
818 0 0
6th
13th
775 0 0
"
DI
303 0 0
7th
14th
325
0 0
17
8th
15th
250
0 0
J
10th
17th
30 0 0
11
11th
18th
100
0 0
12th
19th
•
900 0 0
13th
20th
100 0 0
"
H
נו
נו
1,412 3 0
171 10 0
380 7 0
↑ These are amounts of withdrawals overdue paid on the dates marked * in column headed ́ ́Maturing." N.B.-Notices of withdrawals amounting to pesetas 151,199.49 and £2,478 7. 8ď. have been cancelled.
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