310981-1941-Supplementary-Draft-Bill--Subsidiary-Currency-Notes — Page 2

Power for Financial Secretary to issue and re-issue limited

legal tender subsidiary

currency

notes.

Note

Security Fand.

Repeal of Ordinance No. 10 of 1941.

830

2. It shall be lawful for the Financial Secretary to issue and re-issue one cent, five cents and ten cents currency notes in the Colony, which shall be legal tender for the payment of any amount not exceeding one dollar in the case of the one cent notes and not exceeding two dollars in the case of the live cents and ten cents notes.

3.-(1) The Financial Secretary shall establish a Sub- sidiary Note Security Fund into which he shall pay all moneys he receives for such currency notes. The Fund shall be held on deposit at one or more banks in the Colony and shall be available for withdrawal from circulation of such portion of the issue of the said currency notes as the Financial Secretary may from time to time deem it desirable to withdraw: pro- vided that a portion of the Fund may be invested at the discretion of the Financial Secretary.

(2) All expenses incurred in the printing and delivery of currency notes and such other expenses as the Governor may deem necessary in connexion with the issue of such notes shall be charged to the general revenues of the Colony.

(3) Interest or dividends received on any moneys deposited or invested on behalf of the Subsidiary Note Security Fund shall be paid into the general revenues of the Colony.

(4) Any sums standing to credit or debit in the One- cent Note Security Fund, established by section 3 of the One-cent Currency Notes Ordinance, 1941, shall be trans- ferred to the fund established under sub-section (1) of this section of this Ordinance.

4. The One-cent Currency Notes Ordinance, 1941, is repealed.

Objects and Reasons.

1. The object of this Bill is to repeal Ordinance No. 10 of 1941, which authorized the issue and re-issue of one-cent currency notes legal tender for any amount not exceeding one dollar, and to replace it by a new Ordinance authorizing the issue of one cent currency notes, legal tender for any amount not exceeding one dollar, and five cents and ten cents notes, legal tender for any amount not exceeding two dollars.

2. The Bill follows the general lines of the Ordinance it will replace if passed; but the title of the security fund established by that Ordinance is necessarily changed from the "One-cent Nole Security Fund" to the "Subsidiary Note Security Fund" and similar changes are made in the long and short titles in the. Bill. Sub-section (4) of clàuse 3 is new.

October, 1941.

0. G. ALABASTER,

Attorney General.