CO129-357 - Governor Sir Lugard - 1909 [7-9] — Page 599

2

B(1) Currency notes may be for the following deno- Denomina. minations namely one dollar, five dollars, ten dollars, twenty tion and dollars, fifty dollars. one hundred dollars and any multiple fora of of one bundred dollars and the amount of notes of euch notes. denomination shall be such as may be fixed by the Com- missioners with the approval of a Secretary of State.

(2.) Currency notes shall be in such form and of such design and printed from such plate and on such paper and be authenticated in such manner (whether by the signa- tures of the Commissioners for the time being or facsimiles of the signatures or otherwise) as may be approved by the Secretary of State.

(3.) The plate shall be prepared and kept and the notes printed, issued and cancelled under such regulations as a Secretary of State may make for the purpose of preventing fraud and improper issue.

590

6. A currency note shall be legal tender in Hongkong Notes to be

of the amount expressed therein except a tender by the leg onder. Commissioners at their office or a tender by any bank law. fully authorised to issue notes in redemption of its own

notes.

7.-(1.) Subject as hereinafter mentioned the current Application coin received in change for currency notes shall form the of coin Note Guarantee Fund and be held in the Colony by the received in Commissioners for meeting the payment of the notes and exchange shall not be applied for any other purpose.

(2.) Of the Note Guarantee Fund a portion (in this Orilinance referred to as the coin portion of the Fund) not being less than the fixed proportion hereinafter mentioned shall be in coin and shall be kept in the custody of the Commissioners but the balance may be invested as herein- after mentioned and the portion so invested is in this Ordinance referred to as the investment portion of the Fund.

(3) The coin portion of the Fund shall not be less than the fixed proportion of the notes for the time being in circulation and if necessary the securities forming the investment portion of the Fund shall be sold so as to pre- vent the coin portion falling below the fixed proportion

Provided that it the deficiency of the coin portion below the fixed proportion does not exceed one-fourth of that proportion the sale of securities may with the consent of the Governor be temporarily postponed for a period not exceeding three months; but until the coin portion amounts to that fixed proportion no further investment of securities shall be made and the whole income of the investment portion of the Fund shall be carried to and form part of the coin portion of the Fund.

(4.) The fixed proportion shall in the first instance be two-thirds but if the Governor satisfies a Secretary of State that having regard to the amount of uotes which are always outstanding the fixed proportion may be diminished without danger to the convertibility of the currency notes and obtains the authority of a Secretary of State for the purpose be may by Proclamation fix another proportion so that it be not less in any case that one-half.

(5.) Any such Proclamation may be revoked by an order of a Secretary of State without prejudice to the issue of a new Proclamation.

for note.

8.-(1) Notwithstanding anything in the last preced- Reminting ing section contained it shall be lawful for the Commis- of coin sioners of Currency with the approval of a Secretary of portion of Note Guar State to use any part of the cola portion of the Note antes Fund. Guarantee Fund for the purpose of having it reminted and coined into such coins as may be approved by His Majesty's Government as legal tender in the Colouy. Provided always that where such approval has been given the Commissioners of Curreney shall not be bound to sell any of the securities forming the investment portion of the Fund by reason of the coin portion of the Fund falling below the fixed proportion of the Fund in consequence of the reminting of any part thereof.