HC Deb 22 June 1943 vol 390 cc1011-2
68. Mr. Craven-Ellis

asked the Chancellor of the Exchequer the amount of profits made by the Bank of England on the note issue and paid to the Treasury under Section VI (1) of the Currency and Bank Notes Act, 1928, for the last accounting period?

Sir K. Wood

I would refer my hon. Friend to the answer given on 4th May, 1943, to the hon. Member for North Battersea (Mr. Douglas).

69. Mr. Craven-Ellis

asked the Chancellor of the Exchequer whether he will give details of the nature of the agreement between the Bank of England and the Treasury which is adopted in ascertaining the amount of profits arising annually in the issue Department of the Bank of England, as provided for in Section VI (2) of the Currency and Bank Notes Act, 1928?

Sir K. Wood

As the answer is somewhat long, I will, with my hon. Friend's permission, circulate it in the OFFICIAL REPORT.

Following is the answer:

The agreed arrangements provide that income received (including adjustments of interest or discount) in respect of securities held in the Issue Department shall be credited to the Note Issue Income Account kept at the Bank of England.

The following are the principal charges which are then debited to the Account:

  1. (a) The current expenses of the Department.
  2. (b) In the case of stocks standing above the redemption value a proportionate write-drown on each Dividend day of the excess book value.
  3. (c) The value of notes presented after having been written off.
  4. (d) Composition paid by the Bank of England under the Bank Charter Act, 1844, and the Bankers' Composition Act, 1856, to other bankers in consideration of the discontinuance of the issue of notes by those bankers.

A working balance is retained on the Income Account and the remainder paid monthly to the Exchange Equalisation Account under Section 3 of the Currency and Banknotes Act, 1939.