XII. Bank Notes
a) The Bank shall hâve the exclusive right of issuing and circulating bank-notes in Germany during the period of its charter.
b) The German Government may not itself issue any kind of paper money for circulation in Germany during the period of the Bank's charter, nor shall it permit any German State, Commune, City, other go vern mental unit, corporation or private individual, to issue or circulate paper money in Germany during the period of the Bank's charter, with the exception of the Banks of Baden, Bavaria, Saxony and Wurtemberg, which shall retain their charter of issue for sums not to exceed their présent légal quota. The notes of the Rentenbank shall be gradually withdrawn from circulation under the conditions prescribed in Section XV and the Appendix hereto.
c) During the period of the Bank's charter, the Reich shall not issue any coins for circulation in Germany (except gold coins, containing approximately their full value in gold métal) of a larger dénomination than five (5) marks; and shall not issue coins of five (5) marks or less, in excess of twenty (20) marks per capita of her population. AU coins, other than gold coins, issued by the Government, shall be issued through the Bank. They shall be received by the Government in unlimited quantity at their nominal value, in payment of ail taxes and other government dues.
d) The bank may issue notes for circulation, against gold coin or bullion, statutory discounts as defined in Section IX, demand crédits in foreign'banks and foreign commercial trade bills, with maturities of three (3) months or less, taken at their présent gold values at current rate of exchange.
e) The notes of the Bank, as well as metallic currency, shall be receivable in unlimited quantities for ail taxes and other government dues in Germany. The notes shall be unlimited légal tender, unless otherwise specifically provided by contract, for ail debts, public and private.
Plan des Experts (Rapport Datves). 791
f) The notes of tbe Bank shall be accepted at tbeir nominal value for ail payments made to tbe Bank, botb at tbe head office of tbe Bank in Berlin, and at ail branches of tbe Bank located in Germany.
g) Notes shall be payable to bearer at the head office of tbe Bank in Berlin on présentation. The notes shall also be payable on présentation at tbe otber offices and branches of the Bank, to the extent permitted by their cash reserves and monetary requirements. Payments raay be made in any of the following forms, at the option of the Bank:
1. German gold coins of the présent légal standard of weight and fineness, at par;
2. gold bars, in dénominations of not less than one (1) thousand gold marks, and not more than thirty-five (35) thousand gold marks, at their pure gold équivalent in German gold coin of the présent légal standard of weight and fineness;
3. demand drafts, payable in gold or in foreign currencies at current market gold values, and drawn on funds located abroad in solvent banks to be specified by the Bank's statutes provided that the premia above the gold pars (or gold values, in the case of currencies not on a gold basis) charged by the Bank for such drafts shall never exceed the amount necessary to cover shipping ex penses, including interest for the time of transit, on gold bars shipped in substantial quantities from Berlin to the foreign financial centre on wbfch the draft is drawn.
The Committee is of opinion, however, that, at the inception of the Bank, conditions will be unfavourable for the application of the above rule of convertibility in this event, this rule may therefore be temporarily raodefied by the affirmative vote of every member but one of eacb of the following groups:
