Schedule to this Order shall be a legal tender for the amount in that behalf in that Schedule mentioned.

6. (1) If the Commissioners of the two Protectorates at any time request that any subsidiary coins of less value than the rupees whether of silver, copper, bronze, or other metal or mixed metal be coined, and the Treasury and a Secretary of State approve the request, those subsidiary coins may be so coined, under the direction of the Master of Our Mint, or at one of Our Mints in British India.

(2) The subsidiary coins so coined (in this Order referred to as new subsidiary coins) shall have either the same impressions as the coins specified in the Third Schedule to this Order (in this Order referred to as "existing subsidiary coins "), or such other impressions as may be approved by the Master of Our Mint and by a Secretary of State.

(3) Any new subsidiary coin may be of the same denomination as any existing subsidiary coin or of a different denomination. 7. Every new subsidiary coin shall

(a) If of silver be of the millesimal fineness of eight hundred, and of a standard weight bearing the same proportion to the weight of the standard rupee as the denomination of the new coin bears to that rupee; and

(b) If of copper, bronze, or other metal, or mixed metal be of the standard weight specified in the Proclamation by virtue of which the coin under this Order becomes legal tender in the Protectorate.

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8. In the making of any existing or new coin a remedy or variation from the standard weight, and, in the case of silver coins, from the standard fineness, required by this Order shall be allowed from any existing coin of an amount not exceeding that specified in the Third Schedule to this Order, and for any new coin

(a) As regards fineness (if the coin is of silver) of the amount specified in the Third Schedule to this Order; and

(b) As regards weight of an amount bearing the same proportion(i) If of silver, to the weight of the 25 cent piece mentioned in the said Schedule; and

(ii) If of copper, bronze, or other metal, or mixed metal, to the weight of the 5 cent piece mentioned in the said Schedule ; as the denomination of the new coin bears to those pieces respectively. 9.-(1) A tender of payment of money in the Protectorates, if made in standard coins, or any coins specified in the Second, Third, or Fourth Schedule to this Order, shall, if the coins have not been illegally dealt with, and, when of silver, have not become diminished in weight by wear or otherwise, so as to be of less weight * See amending Order in Council of June 30, 1906. Page 32.

than the weight in that behalf specified in the Schedules to this Order as the least current weight, be a legal tender

(a) In the case of rupees for the payment of any amount;

(b) In the case of other silver coins for the payment of an amount not exceeding 5 rupees, but for no greater amount;

(c) In the case of coins of copper, or mixed metal, for the payment of an amount not exceeding one-half of a rupee, but for no greater

amount.

(2) Each coin shall be a legal tender only for the amount of its denomination.

(3) If any new subsidiary coins are coined under this Order, this Article shall, after the date fixed by the Commissioner in a Proclamation, made with the approval of the Treasury and a Secretary of State, setting forth in a Schedule the like particulars with respect to each coin as are set forth in the Third Schedule to this Order, apply to the new subsidiary coins, as if the Schedule to the Proclamation were added to that Third Schedule, or substituted for that Schedule either as set out in this Order, or as altered by any previous Proclamation under this Article, or for so much of such Schedule as is stated in the Proclamation to be rescinded, and the Schedule, or so much thereof as is stated in such Proclamation to be rescinded, shall be rescinded accordingly.

10.-(1) For the purposes of this Order a coin shall be deemed to have been illegally dealt with where the coin has been impaired, diminished, or lightened, otherwise than by fair wear and tear, or has been defaced by having any name, word, device, or number stamped or engraved thereon, whether the coin has or has not been thereby diminished or lightened.

(2) Any coin which, by virtue of any Proclamation under this Order, has ceased to be legal tender or which has ceased to be legal tender in British India, or which has been illegally dealt with, or is below the least current weight, may be called in, cut, broken, or defaced under the authority of the Commissioner, in accordance with such regulations as the Commissioner may make.

11. From and after the commencement of this Order, and until a date to be fixed by the Commissioner by a Proclamation made under the instructions of a Secretary of State, the one-eighth rupee silver coin and the copper, bronze, or mixed metal coins at present current in East Africa under the provisions of the said recited Order in Council of the 19th May, 1898, shall be a legal tender of payment in either of the Protectorates for any sum not exceeding one-half a rupee, the said coins to continue current until a date so to be fixed by Proclamation as aforesaid at the same rate as regards the rupee as those at which they now pass.

12. Wherever any denomination of the currency of British

India (other than rupees) is specified in any Ordinance, Proclamation, Regulation, Rule, or Contract in force in either of the Protectorates at the commencement of this Order in relation to any payment to be made to or by the Government of that Protectorate, such sums shall be respectively received and paid in the legal subordinate currency established by this Order, or, until the date to be fixed by the said Proclamation, in the subordinate currency established by the said recited Order.

The provisions of this Article shall apply to every other Contract or engagement, unless it contains any special provision or agreement to the contrary.

The equivalents of the subordinate currency of British India and of the legal subordinate currency established by this Order may be fixed for the purposes of this Article by a Proclamation. under this Order.

13. Sovereigns, whether coined at Our Mint in England or at any Mint established as a branch of Our Mint, shall be a legal tender in payment or on account at the rate of fifteen rupees for one sovereign: Provided that such coins have not been called in by any Proclamation made in pursuance of the Coinage Act, 1870,* or have not lost weight so as to be of less weight than that for the time being prescribed for like coins by or under the said Act as the least current weight.

Currency Notes.

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14.—(1) Subject to the provisions of this Order, the Currency Board may from time to time provide and issue and re-issue, in exchange either for current coin or for notes previously issued under this Order, notes in this Order referred to as currency notes." (2) A currency note shall be a promise on the part of the Government of East Africa to pay to the bearer on demand the amount named therein; and the amount required for such payment shall be a charge on the moneys and securities in the hands of the Currency Board under this Order, and on the general revenue of East Africa; and if a sum is required to meet any such note, and the said moneys are insufficient to meet it, the sum shall forthwith, on the demand of the Currency Board, be issued under the order of the Commissioner out of such general revenue.

(3) The holder of a currency note shall be entitled to obtain on demand during office hours, at the office of the Currency Board, payment in current coin of the amount expressed in the note.

15.-(1) Currency notes may, subject to the approval of a Secretary of State, be for any of the following denominations, namely, 5 rupees, 10 rupees, 20 rupees, 50 rupees, and any multiple of 50 rupees, and the amount of notes of each denomination shall *33 Vict., cap. 10.

be such as may be fixed by the Currency Board with the approval of a Secretary of State.

(2) Currency notes shall be in such form, and of such design, and printed from such plates and on such paper, and be authenticated in such manner (whether by the signatures of the Commissioners of Currency for the time being, or facsimiles of those signatures or otherwise), as may be approved by a Secretary of State.

(3) The plates shall be prepared and kept and the notes printed, issued and cancelled under such regulations as a Secretary of State may make for the purpose of preventing fraud and improper issue.

16. A currency note shall be a legal tender in either of the Protectorates of the amount expressed therein, except a tender by the Currency Board at their office.

17.-(1) Subject as hereinafter mentioned, the coin received in exchange for currency notes shall form the Note Guarantee Fund, and be held by the Currency Board for meeting the payment of the notes, and shall not be applied to any other purpose.

(2) Of the Note Guarantee Fund, a portion (in this Order referred to as the coin portion of the fund), not being less than the fixed proportion hereinafter mentioned shall be in coin and shall be kept in the custody of the Currency Board, but the balance may be invested as hereinafter mentioned, and the portion so invested is in this Order referred to as the invested portion of the fund.

(3) The coin portion of the fund shall not be less than the fixed proportion of the notes for the time being in circulation, and, if and so far as necessary, the securities forming the invested portion of the fund shall be sold so as to maintain the coin portion at or above the fixed proportion:

Provided that if the deficiency of the coin portion below the fixed proportion does not exceed one-fourth of that proportion, the sale of securities may, with the consent of the Commissioner, be temporarily postponed for a period not exceeding three months; but, until the coin portion amounts to that fixed proportion, no further investment of securities shall be made, and the whole income of the invested portion of the fund shall be carried to and form part of the coin portion of the fund.

(4) The fixed proportion shall in the first instance be twothirds, but if the Commissioner for East Africa satisfies a Secretary of State that, having regard to the amount of notes which are always outstanding, the fixed proportion may be diminished without danger to the convertibility of the currency notes, and obtains the authority of a Secretary of State for the purpose, he may by Proclamation fix another proportion so that it be not less in any case than one-half.

(5) Any such Proclamation may be revoked by an order of a Secretary of State without prejudice to the issue of a new Proclamation.

Investments and Depreciation Fund.

18. (1) The portion of the Note Guarantee Fund authorized to be invested shall not be invested in any securities of the Government of East Africa or of Uganda, but, save as aforesaid, may be invested in such securities of the Government of any part of His Majesty's dominions, or in such other securities as a Secretary of State may approve.

(2) The investments shall be made in the names of such officers or persons as a Secretary of State may direct, and the investments shall be from time to time varied, and the securities sold, in accordance with regulations approved by a Secretary of State.

(3) The securities shall be applicable to the payment of currency notes and to no other purpose.

(4) The income derived from the securities shall be applied :(a) In paying the expenses of and incidental to the execution of the Order; and

(b) In the payment of a sum equal to one per cent. of the cost price of the securities to a Depreciation Fund; and

(c) Subject to the other provisions of this Order, as part of the ordinary revenue of East Africa.

19.—(1) A separate account shall be kept of the Depreciation Fund, and the income of the fund shall be invested by way of accumulation so as to form part of the fund; but save as aforesaid, or as is otherwise expressly provided by this Order, the Depreciation Fund shall form part of the portion of the Note Guarantee Fund to be invested, and the provisions of this Order shall apply thereto accordingly.

(2) When the Commissioner for East Africa satisfies a Secretary of State that the Depreciation Fund is not less than ten per cent. of the invested portion of the Note Guarantee Fund, and is of such an amount that it is unnecessary further to increase the Depreciation Fund, he may order the annual appropriation of the said one per cent. to be discontinued, and the annual income of the Depreciation Fund to be wholly or partly applied in aid of the general revenue of East Africa until he shall, with the approval or by direction of a Secretary of State, otherwise order.

Accounts and Expenses.

20.-(1) The accounts of all transactions of the Currency Board under this Order shall be audited in every year by such persons