§ Mr. FLYNNasked the Chancellor of the Exchequer whether he is aware that the official banking returns for the average of 610 the four weeks ending 3rd April, 1909, show that the total circulation of bank-notes issued in Ireland was £6,729,361, as against the authorised circulation of £6,354,494; is he aware that some of the Irish banks of issue have a privilege of unsecured circulation far in excess of their requirements, whilst the majority of them are put to much disadvantage by the inadequacy of their powers in this respect; and whether any action can be taken to remedy this inequality by an Order in Council or by other action of the Treasury?
§ The FINANCIAL SECRETARY to the TREASURY (Mr. Charles Hobhouse)The total circulation of bank-notes in Ireland on the average of the four weeks ended 3rd April, 1909, was £6,729,361, as stated, of which £2,447,249 was covered by gold and silver coin held at the head offices of the various banks of issue. The uncovered circulation was thus £4,282,112, or less by £2,072,382 than the circulation authorised by certificate. I am aware that some of the banks do not in fact avail themselves of their privileges of uncovered issue to anything like the full extent allowed by the certificates, while others do, but as I stated in reply to a question by the hon. Member on the 13th inst., these privileges were given in 1845 merely by way of compensation for rights previously enjoyed. In these circumstances, my right hon. Friend is unable to see how any inequality can be held to arise. The limits of the fiduciary issues of the respective banks are determined by the provisions of the Banking (Ireland) Act, 1845, and are variable only as provided by that Act. It would not be competent to alter these arrangements otherwise than by Act of Parliament.
§ Mr. FLYNNasked the Chancellor of the Exchequer whether he has official information to show that the banking returns for the average of the four weeks ending 14th November, 1908, disclose the fact that the excess issue under section 8 of the Banking (Ireland) Act of 1845 of the Bank of Ireland notes was £1,266,272 less than the maximum issue permitted by the certificate and that of the Provincial Bank less by £262,537; whether, in view of the increased volume of banking business in Ireland and the demand of commercial classes in Ireland for a redistribution of the privilege of bank-note issue in that country, he will, in his capacity as connected with the office of Lord High Treasurer of Ireland, consider the advisability, by legislation at an early day or otherwise, of 611 redistributing this unused power of note issue amounting to £1,528,000 amongst the three banks of non-issue which are not inferior in status or importance to the other Irish banks; and whether he will agree to the appointment of a Departmental Committee to inquire into the entire system of note issue in Ireland?
§ Mr. HOBHOUSEThe answer to the first part of the question is in the affirmative. As regards the second part, I cannot add anything to the reply given to the hon. Member on the 13th inst. My right hon. Friend sees no reason, as at present advised, for the appointment of a Departmental Committee, but he will, as already promised, give his careful consideration to any representations which may be made to him on the subject.
§ Mr. FLYNNMay I ask the right hon. Gentleman whether this Statute, established 70 years ago, is to be stereotyped for ever?
§ Mr. HOBHOUSEI have no information which tends to show that the regulations are not sufficient.
§ Mr. FLYNNI have addressed a question to the Lord High Treasurer. Has he not more intimate knowledge of the commercial affairs of Ireland?
§ Mr. HOBHOUSEThe information is at his disposal.