The Secretary to the Treasury has forwarded me the following minute for advice:

Included in the Agreement entered into between the Commonwealth Treasurer and the Associated Banks in October 1914, there is a clause (0, reading:

The Commonwealth Treasury to make advances to the Banks if required, in Australian Notes, the Banks to deposit in gold one third of the amount of notes advanced, and to give a deposit receipt at 4% p.a. with a currency of 12 months for the balance. Deposit receipts to be payable 12 months after the end of the war and the Banks to have the option of paying same at any time before maturity.

In connection with this matter, I would invite your attention also to the proclamation in the Commonwealth Gazette No. 68, dated 31 August 1921, in which it was declared that the 31st day of August 1921 should be deemed to be the date of the termination of the war.

I should be glad if you would kindly advise as to whether this proclamation will have the effect of terminating the Agreement between the Treasury and the Banks on 31 August 1922.

The proclamation referred to in the above minute was issued under the authority of the Termination of the Present War (Definition) Act 1919.

Section 3 of that Act specifies the effect of such a proclamation as regards the interpretation of references, in any Act, Order in Council, Proclamation or Regulation, to the present war or present hostilities.

The operation of the proclamation as declared in section 3 is not, I think, exhaustive, and in the absence of evidence of intention to the contrary, the date fixed in the proclamation may be taken as the end of the war for the purposes of the deposit receipts referred to.

I am unable to advise as to the date of the termination of the Agreement unless a copy thereof is made available.

[Vol. 18, p. 264]