HC Deb 06 July 1908 vol 191 cc1258-9
MR. FLYNN (Cork, N.)

I beg to ask the Secretary to the Treasury, in reference to the changing of an Irish bank note in Great Britain on payment of a commission of 1d. in the £, whether the inter-bank arrangement of charging commission is laid down by the Bank of England; if not, under what statutory enactment is the charge made; and does the inter-bank arrangement or the statutory enactment apply in the case of an Irish bank making payment of its own notes in one of its branches in London.


The Bank of England has no power to lay down any arrangement for other banks on this subject and no such arrangement has been voluntarily agreed to by other banks at their suggestion. Perhaps I may remind the hon. Member that an Irish bank note is an engagement by an Irish bank to pay a sum of money on demand at a certain place or places in Ireland. The bank which issues the note cannot be compelled to pay it in London; nor can any other bank in London be required to do so. If London banks are willing to cash such notes on payment of a commission, no statutory enactment is necessary to enable the commission to be charged.


Then do I understand that if an Irish bank with a branch in London desires to give cash for its own notes it can do so without interference from the Bank of England?


Certainly, so far as I know.