23215-1911-Supplementary-Bill-read-a-first-time--Mercantile-Bank-Note-Issue — Page 2

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Provided that the Colonial Treasurer shall not exercise or cause to be exercised the powers aforesaid without the consent of the Governor.

(5.) Such notes shall not be legal tender but shall be redeemable at the office of the Company in the Colony in current coin which is for the time being unlimited legal tender in the Colony.

of coin or of

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re-

4. The Company shall deposit and at all times keep Deposit of deposited with the Crown Agents securities to be approved securities or by the Secretary of State to an amount equal in value to both at the face value of the notes in circulation with the addition option of of five per centum of such value; or at its option the Company as Company shall deposit and at all times keep deposited funds exclu- with the Colonial Treasurer coin which is for the time sively availa being unlimited legal tender in the Colony to an amount demption of equal to the face value of the notes in circulation; or note issue at its like option the Company shall deposit and at all and in the times keep deposited securities, so approved as aforesaid, event of in-

solvency. with the Crown Agents and coin, which is for the time being unlimited legal tender in the Colony, with the Colonial Treasurer in which ease the amount of „snch securities shall be equal in value to the difference between the amount of the coin deposited and the face value of the notes in circulation with the addition of five per certum. Such seemities and such coin shall be under the control of the Colonial Treasurer and shall be held by the Crown Agents and the Colonial Treasurer respectively as special fnds exclusively available for the redemption of such issue of notes, and in the event of the Company becoming insol- vent shall be sold and applied toward such redemption as far as may be necessary but without prejudice to the rights of the holders of such notes to rank with other creditors of the Company against the assets of the Company.

If the produce of the sale of such securities should not equal the face value of the notes outstanding, the difference shall rank pari passu with other simple contract debts on the assets of the Company. If, on the contrary, such securities realise more than the face value of such outstand- ing notes, the difference shall be paid over to the Company.

5.-(1.) There shall be published in the Gazette every Monthly month, a statement (to be rendered by the Company on publication the first working day of each month) of the face value of in Gazette of

outstanding the notes outstanding, and of the securities and coin held notes and against these notes. The statement shall show the nominal securities. value of such securities, the price at which they were valued on deposit and also the latest market price of such securi- ties.

(2.) If for two consecutive months the said market price plus the value of the coin (if any) deposited with the Colo- nial Treasurer should indicate a selling value less than the amount required by section 4, the Colonial Treasurer shall demand that all notes returned to the Company shall be retained and not reissued until the amount so required is reached, or at his option the Colonial Treasurer shall demand the deposit of additional limited legal tender coin or securities sufficient to raise the selling value of the securi- ties plus the value of the coin (if any) already deposited to the amount so required; and the Company shall comply with such demand. If, however, for three consecutive months the said market price indicates a continued and constant increase on their selling value, the Governor-in-Council may allow the securities to be reduced provided the selling value of such securities plus the value of the coin (if any) deposited is never allowed to fall below the amount required by section 4.

authorise

6. When in the opinion of the Governor-in-Council a Power of temporary emergency exists, he may permit the Company Governor. to issue notes in excess of the paid up capital of the in-Council to Company, provided there has been specially deposited and excess note is kept in the custody of the Colonial Secretary and the issue in Colonial Treasurer for the time being an amount of legal temporary tender dollars equal to the whole face value of such excess emergency. issue for the time being actually in circulation, to be held by the said Colonial Secretary and Colonial Treasurer exclusively for the redemption of such notes.