2
unable to call in the whole issue within the time limit are allowed to establish banks separately from their business, and to register such banks in accordance with the regulations.
> 7. No bank or firm carrying on a banking business, whether official or mercantile, opened after the publication of these regulations, shall issue bank-notes.
8. After the publication of these regulations, those banks permitted to issue notes must not let their issue exceed the amount of notes at present in circulation.
9. Every bank or firm issuing notes must fill in, on a form prepared by the board, the correct number of notes they have in circulation. The correct amount in circulation is to be calculated as the greatest amount în circulation on any day of the month following the publication of the regulations in each place.
10. Every bank, whether official or mercantile, shall have a reserve fund to the full amount of the notes issued. Such reserve fund shall consist of 40 per cent. of ready money and 60 per cent. of Government bonds, reliable shares, script, or deposit notes. In order to facilitate inspection this reserve fund must be kept separately in the treasury, and the accounts must not be mixed up with the ordinary business of the bank.
11. All banks shall, beginning from next year, withdraw 20 per cent, of their notes from circulation every year, and within five years from that date all the notes must have been called in.
12. Should any bank wish to call all its notes in at once without waiting for the time limit to expire, such bank can arrange with the Ta Ch'ing Bank to deposit satis- factory securities and borrow a sum of money which can be repaid in annual instalments at a low rate of interest.
13. In the districts where a new coinage may hereafter be adopted, if there should by any issue of notes having an injurious effect on the subsidiary coinage (such for instance as cash-notes of different sorts and notes in dollar cents) then the board when the time comes will make special arrangements to deal with this question.
14. From next year every bank must each month report to the board, on a form supplied by the board, the amount of notes issued that month and the amount of reserve held.
15. The board shall send officials to the official banks to make investigation from time to time and in the event of their reserve funds not corresponding to the amount of the notes issued by them, or their having made untrue reports or otherwise broken these regulations, they shall be punished by the board.
16. Mercantile banks will be periodically inspected by representatives of the local officials and of the chamber of commerce. If the reserve is insufficient or the returns inaccurate or other abuses are disclosed, then the matter will be reported for enquiry by the board.
17. The regulations for periodical inspection will be carefully considered and drawn up by the board for the guidance of all parties.
18. Any slight breach of these regulations will be punished by the local officials by a fine of not less than 100 dollars and not more than 500 dollars. Any serious breach will be reported by the local officials to the board.
19. These regulations are for safeguarding the coinage and protecting commercial interests. If any one should take advantage of them to extort, then the board can directly petition the board or the high provincial authorities who after a careful examination of the facts should severely deal with the offender. The banks are also at liberty to petition the local officials to punish severely those people who spread rumours and stir up trouble.
20. In the event of any amendments having to be made to these regulations or if they should be suspended or abolished then the board will consider and deal with the matter.
Office or Individual.
breign
1909
16 Oct
Last Previous Paper.
31859
Points to Gou Secret 14 Oct
33552
LÙNG KONG
33510
Affairs Jbhria thena Railways Prints of purcher
MJohn's
M Littles
DOMESTIC.
16
The
corred
mams on the conditions in
1
China (est.) the phoning punt, are
interesting
2 Painti
Không
JR
AN
Ma
Au
13
secret 27
-A. & E, W.-20262,27-
25000---11-08.
ext subsequent Paper
33552
No comments yet.
Private notes are available after approval.