GIPE-PUNE-OIIOI2 - DSpace@GIPE

AND THE BANQUE DE FRANCE
45
All these instruments of paper money are
to be evaluated at their gold-worth for
the purpose of calculation.
11. Business Securities or Commercial Papers 60 p.c.
I. bills of exchange such as mature in not
more than 3 months. possess the signatures
of 3 solvent parties. and represent
good commercial dealings may be discounted
and kept as cover.
2. cheques. such as bear the signatures of
3 solvent parties may likewise be discounted
and used as cover.
In either case the third signature is not
required should the bill or the cheque
be pledged for by a special security.
Gold-deckung is the chief feature of the new regulations.
But the "gold-cover." it is to be noted. is not
all "national." The "foreign" element is conspicuous •
. although optionally. in both the metallic as well as the
Devisen portions of the gold "reserve." The Act permits
the reserve to be kept abroad.
The foreign element is to be observed also in the
compulsory appointment of a foreigner as the commissar
·or controller for notes as well as the existence of foreigners
in the Generalrat or General Council.
The old Reichsbank possessed the privil~e of issuing
uncovered notes not exceeding 550.000.000 M. This
•
privileged limit might be exceeded on the payment of a
nne.
But the reconstruction of 1924 has deprived the
.Reichsbank of this privilege. The principle of "no cover ~