London, Feb. 2.
The Currency and Bank Notes Bill, foreshadowed at the time of the recent transfer of gold from the Sank of England to the Exchange Equalization Account, was introduced today into the House of Commons by Sir John Simon, the Chancellor of the Exchequer.
Under the Bill, gold and other assets of the Issue Department of the Bank of England will be valued at! current prices and any excess over the total value of the note issue will be transferred to the Equalization Account, and, conversely, the Exchange Account will make good any deficiency.
Gold in the Issue Department is at present valued at the old price of 85s. per fine ounce. Under the Bill it will be written up to the current market value, and, as gold will remain in the Issue Department, it will be possible to fix the Fiduciary Note Issue at £300,000,000 instead of the present temporary figure of 400,000,000.
The introduction of the Bill follows closely on the Minute issued by the Treasury on January 6, in conformity with the Currency and Bank Notes Act of 1928, increasing the Fiduciary Note Issue to £ 400,000,000. At that time, the Government declared its intention to introduce legislation when Parliament convened to amend the Currency and Bank Notes Act of 1928.
The purpose of the transfer, it is understood, is to st the Equalization Account, should now have sufficient means to meet any contingency.—Reuter.
Text read from the printed page and cleaned; old type leaves the occasional error.