A. They are not secured. In case of the liquidation of the five last-named banks, however, their shareholders are unlimitedly liable for their notes and they are liable to contribute a sum necessary to restore to the general assets the sums that may have been paid out of the same in respect of claims under notes.
Q. What is the total amount of their outstanding issues?
A. About £7,500,000.
Q. Do you pay the Government in the form of taxes or otherwise, either directly or indirectly, for your privilege of note issue?
A. Yes, we all pay a license duty of £30 for each place at which notes are issued, and a tax of 8s. 4d. per £100, or a penny per £1, on the average amount of notes in the hands of the public at the close of each week.
Q. Is it your custom to carry a fixed amount in government securities?
A. Yes, but the amount is not rigidly fixed.
Q. Do you discount any but prime bills?
A. Yes; we do all classes of business.
Q. Is it your custom to employ surplus funds in purchase of bills from discount houses?