HC Deb 08 November 1928 vol 222 cc216-7
41. Mr. PETHICK-LAWRENCE

asked the Chancellor of the Exchequer on what date it is proposed to hand over the note issue to the Bank of England; and what arrangements have been made for the transfer?

Mr. CHURCHILL

The transfer will take place on the 22nd November. The arrangements made are those authorised by the Currency and Bank Notes Act of this year. The present Currency Notes will remain full legal tender for the present. As they come back from circulation in ordinary course they will be replaced by Bank Notes. When the old Notes are eventually called in, at least three months' notice will be given to the public, but it is not anticipated that this will happen for some considerable time. After the expiration of that notice when it is given, the old Notes will continue to be exchangeable for new Notes at the Bank of England.

Mr. PETHICK-LAWRENCE

Does the statement of the right hon. Gentleman mean that the new notes will be available from and after the 22nd November; and, in view of the fact that the profits of the note issue go to the Crown, do I understand that the Treasury has given its sanction to the form and the cost of the new notes?

Mr. CHURCHILL

Yes, Sir.

Mr. RUNCIMAN

The right hon. Gentleman said the three months' notice would be given some time in the near future. Is that to be a matter of months or years? He used the phrase "some considerable time." Does that mean years or months?

Mr. CHURCHILL

I would rather not define it at the moment.