§ MR. H. BAILLIEsaid, he begged to ask the right. hon. Gentleman the Chancellor of the Exchequer whether, in the event of the Government deciding to renew the Bank Charter Act for another term of years, he would be prepared to introduce a clause to continue in force the arrangement by which the Bank of England agreed to pay to those private banks which consented to withdraw their paper circulation 1 per cent per annum upon the average issue of those banks in the three previous years, and to continue the same so long as the other private banks were permitted to issue their paper?
THE CHANCELLOR OF THE EXCHEQUERsaid, that the present Bank Charter Act did not require renewal. There was a power inserted in it to put an end to the exclusive privileges of the Bank on certain notice being given; but until that notice was given the Bank Charter Act remained in force. With respect to the provision to which the hon. Gentleman referred, that was expressly limited to the month of August in the present year. Therefore it would expire, unless it were previously renewed by the Legislature. In the event of no objection being made by the Bank of England, he should be prepared in the course of the present Session to bring in a Bill to continue that provision.