CO129-478 - Public Offices & Others - 1922 — Page 156

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(3)

Nor do My Lords think it necessary to raise any

objection to the repeal of the provision in the existing

Ordinance under which the Bank are obliged to keep at each

of their establishments coin and bullion to the value of at

least one third of the bills and notes issued from there and

for the time being in circulation.

This provision was in

its origin a concession, as it replaced an obligation imposed

on the Bank by the Ordinance of 1866 to keep at their head

office that proportion of all the bills and notes issued from

each establishment. But both when the stipulation was originally imposed and when it was modified there was no

reserve specifically held against the note issue.

ordinary course of business the Bank must in any case keep a sufficient supply of till-money at each of their establishments, and with the note issue properly secured My Lords do not consider it necessary that the existing obligation should continue.

In the

(4). As regards the "custodian" scheme and its application

to bullion, it seems to My Lords that the practical difficulties

Presumably

will be greater in the case of bullion than of coin.

whatever the exact details of any scheme that may eventually be

adopted the Consular officer or other custodian must be in a

position to certify that the reserve in his custody is of such

an amount or has been increased or diminished by such an amount

on such an occasion. With coin this should not be too onerous

a duty, but it is questionable whether an officer could be

expected to ascertain in all cases the value of bullion deposited

with him.

I am,

sir,

Your obedient Servant,

Or Nainagen

will

!