CO129-523-13 Currency situation 16-6-1930 - 16-6-1930 — Page 23

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In addition to the dollars, there are

fractional coins in silver of less fineness and in

copper.

The issue of notes is confined to three

Banks which are restricted in the amount they may issue as follows:-

Authorised Issue

Statutory Security.

Chartered Bank

$25,000,000

Coin or securities

Hong Kong Bank

Mercantile Bank.

$30,000,000 with an unlimited excess fully secured by coin or bullion.

Equivalent of the Bank's Paid up Capital, which is £1,050,000 with an unlimited excess, fully secured by coin, when, in the opinion of the

equal in value to one-third of

$8,000,000.

Coin

bullion or securities

equal in value to

notes in circulation

in excess of

$8,000,000 (It is

the practice, though not à legal obliga- tion for the Chartered Bank to deposit at least one-third in coin of notes in circulation) Coin of securities equal in value to $23,333,333 and for any excess over $30,000,000 coin or bullion equal to the whole value of such excess. Whatever the total amount of notes in circulation the security of coined dollars shall not be less than one-third.

Securities equal in value to five per cent over the amount of notes in circula- tion or legal tender coin to the full amount. Any excess of the authorised

Governor in Council,issue to be fully

a temporary

emergency exists.

covered by coin.

The privilege of issuing notes is granted to the Chartered Bank by charts & to the other two banks by local ordinance, the privi.

·lege in all three cases crasing, unless re- -newed, in to July 1937.