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Limit of amount of consolidated bank notes.
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53.—(1) In this Part of this Act—
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the expression “maximum limit” means the maximum amount of consolidated bank notes which may under this Act be outstanding otherwise than on an extraordinary issue made under this Act at the time in reference to which the expression is used and the expression “initial period” means the period of two years from the 31st day of March or the 30th day of September, whichever first occurs next after the day appointed under this Act for the commencement of the issue of consolidated bank notes.
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(2) The Commission shall take such steps, by restriction of issue or otherwise as it thinks fit, to ensure that the amount of consolidated bank notes outstanding at any one time exclusive of consolidated bank notes outstanding at any one time exclusive of consolidated bank notes outstanding on an extraordinary issue made under this Act does not exceed the amount appointed by or under this section to be the maximum limit for that time.
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(3) Save as is otherwise provided in this section, the maximum limit during the initial period shall be six million pounds.
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(4) At or within one month before the expiration of the initial period and of every period of three years thereafter, the Commission shall consider the maximum limit and may, on such consideration at or before the expiration of the initial period by unanimous vote and, on such consideration at or before the expiration of any triennial period by majority vote fix the maximum limit at such amount as it considers proper having regard to the total amount of liquid sound advances by Shareholding Banks to persons in Saorstát Eireann then existing, and other assets and liabilities of the Shareholding Banks, and such other matters as it considers relevant, and if the Commission on the occasion of any such consideration so fixes the maximum limit, the same shall be the maximum limit for the ensuing triennial period, and if at or before the expiration of the initial period the Commission does not so fix the maximum limit the maximum limit for the first triennial period shall be six million pounds and if at or before the expiration of any triennial period the Commission does not so fix the maximum limit the maximum limit for the then ensuing triennial period shall be the same as the maximum limit for the then expiring triennial period.
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(5) If the average amount of legal tender notes outstanding during any half-year which expires during the initial period is not less than six million pounds the Commission by a vote of not less than five of its members may, if it so thinks fit, fix the maximum limit at such amount as it considers proper having regard to the total amount of liquid sound advances by Shareholding Banks to persons in Saorstát Eireann then existing and such other matters as it considers relevant and if and whenever the maximum limit is so fixed the same shall be and continue to be the maximum limit until the expiration of the initial period or the fixing of a maximum limit under the next following sub-section whichever shall first happen.
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(6) If the average amount of legal tender notes outstanding during any half-year together with the average amount of gold coins which are for the time being legal tender under this Act in Saorstát Eireann for unlimited amounts estimated by the Commission to have been in circulation or held by bankers in Saorstát Eireann during such half-year does not exceed four million pounds the Commission may, if it so thinks fit, during the ensuing half-year fix the maximum limit at the sum of one million pounds in excess of the aggregate of the said average amounts and if and whenever the maximum limit is so fixed the same shall notwithstanding anything to the contrary contained in this section be and continue to be the maximum limit until the Commission fixes under the next following sub-section some other maximum limit.
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(7) Whenever the Commission has fixed a maximum limit under the foregoing sub-section, the Commission may at any time thereafter remove such maximum limit and if such maximum limit is so removed during the initial period the Commission shall forth with fix the maximum limit at six million pounds and if such first-mentioned maximum limit is so removed after the expiration of the initial period the Commission shall forthwith fix the maximum limit at such amount as it considers proper having regard to the total amount of liquid sound advances by Shareholding Banks to persons in Saorstát Eireann then existing and other assets and liabilities of the Shareholding Banks and such other matters as it considers relevant, and whenever the Commission fixes a maximum limit under this sub-section such maximum limit shall be and continue to be the maximum limit during the residue of the initial period or the triennal period (as the case may be) then current.
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(8) The Commission shall not at any time fix the maximum limit at a sum exceeding six million pounds without the previous consent of the Minister.
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(9) If the period commencing on the day appointed under this Act for the commencement of the issue of consolidated bank notes and ending on the next ensuing 31st day of March or 30th day of September, whichever first occurs, exceeds three months such period shall for the purpose of this section be deemed to be a half-year, and if such period does not exceed three months such period and the next ensuing half-year shall for the purpose of this section be deemed to form together one half-year.
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