§ Mr. FLYNNasked the Chancellor of the Exchequer whether he is aware that the Banking Return for the average of the four weeks ending 14th November, 1908. in addition to disclosing the apparent excesses in the note issue of some banks in Ireland, also discloses the fact that the actual amount of notes issued by the Bank of Ireland was £734,278 less than its power of issue, which is £3,738,428, and by the Provincial Bank £119,278 less than its authorised circulation of £927,667; and will he say whether steps will be taken to remedy this inequality in the present system of bank-note issue in Ireland?
§ Mr. HOBHOUSEThe effect of the certificate under section 8 of the Banking (Ireland) Act, 1845, is to determine the 1862 amount by which the issue of any bank may, under the provisions of that section, exceed the amount of gold and silver coin held by such bank. Such excess was, on the average of the four weeks ended 14th November, 1908, as shown by the Return referred to in the question in the case of the Bank of Ireland, £2,472,156, and in the case of the Provincial Bank £665,130. These figures are less than the maximum amount permitted by the certificates by £1,266,272 and"£262,537 respectively. The power to issue notes in excess of the amount of gold and silver coin held was given to those and other banks in 1845 by way of recognising and stereotyping a preexisting privilege, and the fact that any particular bank or banks do not avail themselves to the full of the privileges accorded to them is no ground for enlarging the privileged issues of other banks. My right hon. Friend cannot, therefore, admit that any inequality arises under the present system.
§ Mr. FLYNNCould not the short issue of the Bank of Ireland and the Provincial Bank be allocated amongst other joint-stock banks by a mere Order in Council?
§ Mr. HOBHOUSEIt would require legislation, I am advised.
§ Mr. FLYNNasked the Chancellor of the Exchequer if he is aware that in respect to the total authorised circulation of bank-notes in Ireland, which stands at £6,354,494, a disproportionately large power of issue is given to the Bank of Ireland; is he aware that if power were conferred on all the Irish banks to issue in accordance with their present capacities their united circulation would not exceed this figure, and there would be no need to alter the total authorised issue but merely to redistribute it amongst all the existing banks according to their ascertained powers of issue; and whether he will consider the advisability of taking steps by legislation or otherwise to enable all Irish banks to issue bank-notes?
§ Mr. HOBHOUSEThe figure quoted represents not the total authorised circulation of bank-notes in Ireland, but the aggregate amount by which such circulation is permitted by the Banking (Ireland) Act to exceed the aggregate amount of gold and silver coin held by the banks of issue. The share of the Bank of Ireland is determined by the terms of section 8 of that Act, and has relation solely to the rights enjoyed by that bank before the passing of the Act. The aggregate average 1863 circulation of the six banks of issue for the four weeks ended 14th November, 1908, was £7,487,569, or £1,133,075 more than the aggregate issue authorised by certificate. There would be grave objections to the indiscriminate grant of note-issuing powers to all banks as suggested in the latter part of the question.
§ Mr. FLYNNCould not the redistribution among the banks be carried out by Order in Council without legislation?
§ Mr. HOBHOUSEI should like notice of the question.
§ NEW MEMBER SWORN.—The Right Hon. Herbert Louis Samuel, for the county of Yorkshire (Cleveland Division), after appointment as Vice-President of the Council.