CO129-218 - Administrator Marsh Governor Sir Bowen & Others - 1884 [11-12] — Page 383

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of the Bank failing. They understand that the assets of the Bank must be realized, that the demands of the note holders

must be first satisfied. If this be the

Case

my

Lords

presume

that it would

rest with the Liquidator to pay a dividend to the note holders from time to time, and that considerable delay might ensue, perhaps of years before the Note holders were paid in full. They do not understand that the Cash in the possession of the Bank at the time of failure would be appropriated at once to payment of the notes, and that the procceds of the assets as realized would be forthwith applied in like

manner until the demands

Noteholders are.

would

of

the

satisfied. My Lords

further be

glad if you

would

point

opinion

point out the

difference in

your -between the manner in which the quoted Section would operate, and that in which the Section of Sir Stafford Northcote's Banking Act of 1879 relative to the unlimited liability of Banks under the Companies Acts for their notes would operate.

The Hong Kong and Shanghai Bank offer if the proposed privilege of recuing

one dollar notes be granted to earmark and deposit in a separate

vault, the keys of which would be -kept by the Colonial Treasurer, a special reserve of Mexican dollars the full

extent of its

equal

to

its one dollar notes

in circulation. This special reserve

would be, they state, in case

of

to

suspension of payment inalienable