CO129-381 - Governor Sir Lugard - 1911 [11-12] — Page 28

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I should pay x to the Banks in one dollar notes, or,

if the Banks have already been paid by an advance from rev-

enue, they should employ the notes in repaying the advance

and put them into circulation.

The newly coined dollars should be held as specie reserve

against the note issue. The rest of the reserve will be invest-

ments in London.

The one dollar notes will of course be unlimited legal

tender.

The Govt. should hold and not re-issue subsidiary coin

thay

paid in to the Govt. by the public. When has accumulated a

they

large stock, should value it on the basis of the prevailing

discount

call the value y. This stock should then be treated

in the same way as the stock taken from the Banks. Standard

W

dollars should be coined to the value of the thirds of y, and on their

It receipt in the Colony notes to the value of y should be

issued. The surplus should again be invested by C.A. The loss

caused by the rate of discount when y was calculated should be

made good from General Revenue.

When the success of the note issue has been established, the

reserve

in standard dollars can be reduced to one half er