§ MR. ATKINSON
I also wish to ask the right hon. Gentleman the Chancellor of the Exchequer if he will state when the present agreement with the Bank of England expires; what are its terms and conditions; whether he proposes to make any change in the agreement now to be made; and for how many years he proposes to make it?
§ MR. GOSCHEN
The Bank of England holds its banking privileges, including issue of notes, upon condition of making certain payments to the Exchequer, under the Bank Act of 1844, but subject to redemption upon 12 months' notice and on repayment by Parliament of the debt due by Government to the Bank. The Bank of England manages the Public Debt at certain rates of remuneration fixed by the Act of 1861. These rates continued in force until the 5th of April, 1886, and thenceforward until Parliament shall otherwise direct. The Bank of England transacts the ordinary banking business of the Government, having the use in return of the Government balances. This agreement can be revised at any 1233 time. I have at present under consideration the arrangements between the Government and the Bank.