HC Deb 28 July 1915 vol 73 c2267
31. Mr. WATT

asked the Chancellor of the Exchequer whether he has had complaints from any of the other London banks that the Bank of England parts more readily than they do with gold over the counter, making no effort to induce the public to accept notes in payments; whether he is aware that this leads the public to prefer the Bank of England and to the depletion of gold reserve; and whether he will make any effort to prevent this unequal action?


I am unable to trace any complaint such as is referred to in the first part of the question. The Bank of England is always prepared to make payments in currency notes or in its own notes when the payee so desires. But as both Bank of England notes and currency notes are payable in gold at the Bank of England, any attempt by the Bank to force their circulation would be not only most undesirable, but would tend in practice to defeat its own object.