§ 44. Mr. Manderasked the Chancellor of the Exchequer what action is taken in cases where there is destruction by 1013 enemy action on a substantial scale of Treasury and Bank of England notes in circumstances which prevents identification; and whether the result is to the financial advantage of the Bank of England?
§ The Financial Secretary to the Treasury (Captain Crookshank)Bank of England notes of denominations of £5 and upwards which are destroyed by enemy action are normally replaced by the Bank of England against a banker's indemnity, if full particulars of the notes are supplied. The Bank will also replace £1 and 10s. Bank notes to the extent of the identifiable fragments or ashes which can be produced. No financial advantage accrues to the Bank of England by reason of the complete destruction of Bank of England notes, the position being governed by Sections 6 and 7 of the Currency and Bank Notes Act, 1928, whereby all profits of the issue department of the Bank are paid to the Exchequer. I should like to take this opportunity of urging everybody in present circumstances not to keep large sums in notes in their offices or houses but to put them into a bank or savings bank so as to minimise the risk of loss.