HC Deb 08 July 1909 vol 7 cc1417-8
Mr. FLYNN

asked the right hon. Gentleman whether his attention has been called to the circumstances connected with the banking trade of Ireland, in respect to the authorised circulation and issue of bank notes; is he aware that a return of the averages for the four weeks ending 14th November, 1908, disclosed the fact that the authorised circulation of the Bank of Ireland being £3,738,428, the actual amount of notes issued was only £3,004,150, or £734,278 less than its power of issue; that the Provincial Bank's authorised circulation being £927,667, its actual issue was only £808,389, or £119,278 less than its power of issue, whilst on the other hand the National Bank, with an authorised circulation of £852,269, had an actual issue of £1,386,411, showing an excess issue of £534,142, the Ulster Bank, with an authorised circulation of £311,079, had an issue of £1,090,941, showing an excess issue of £779,862, and the Northern Bank, with an authorised circulation of £243,440, had an issue of £616,239, or an excess issue of £372,999, and similar excess issues above the authorised circulation prevailed in regard to other Ulster banks; and whether, in view of the fact that the authorised issues were fixed for Ireland and Scotland by an Act of 1845–6, and to the altered and in most part extended business and bank- ing operations since that period, steps will be taken to adjust more equitably the basis of authorised note issue and its extension to the Royal, the Munster and Leinster, the Hibernian, and other joint stock banks founded and conducted on safe commercial principles?

Mr. LLOYD-GEORGE

The hon. Member appears to have overlooked the fact that, in addition to the circulation authorised by certificate, the banks in question have authority to issue notes against coin. His figures of "authorised issue" take account only of the circulation authorised by certificate, and, as in point of fact, the apparent excesses during the period in question were in all cases more than covered by coin held at the respective head offices of the banks, there was in no case any excess over the total authorised circulation, and no alteration of the law appears to be called for.

Mr. FLYNN

Is the right hon. Gentleman aware that in 1845, when Sir Robert Peel was dealing with this question, there were eight banks of issue in Ireland, and now there are only six, notwithstanding the extraordinary increase in the banking business during the past 70 years? Can the Chancellor of the Exchequer give us any hope that when he is relieved of the pressure of the Budget business he will give his attention to this matter?

Mr. LLOYD-GEORGE

I must have notice of this question, because it will involve an inquiry into the circumstances of 1845.

Mr. FLYNN

What about the second part of my question?

Mr. LLOYD GEORGE

At any rate, the Budget will give me some time for consideration.

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