§ 52. Mr. McKinlay
asked the Chancellor of the Exchequer whether he is aware that Scottish Service men stationed in 1104 England only receive 19s. 6d. in exchange for notes issued by Scottish banks; and will he take steps to end this practice?
§ The Financial Secretary to the Treasury (Mr. Assheton)
Scottish bank notes are not legal tender in England, and a bank cashing such notes in England may charge for the service of forwarding them to the Scottish bank of issue for collection. In practice, I am advised that the holder of a Scottish note can cash it without charge at the head office in London of any of the Scottish banks. As pointed out by my hon. Friend the Assistant Postmaster-General in the reply which he gave to my right hon. Friend the Member for Kirkcaldy (Mr. Kennedy) on 26th March, 1942, post offices accept Scottish bank notes if tendered in payment for any post office transaction. Generally, the number of Scottish notes presented in England has been reduced by the administrative arrangements under which payments to members of the Forces proceeding from Scotland to England are made in Bank of England notes.
§ Mr. McKinlay
Is it not about time this position was rectified? If Scottish bank notes are not legal tender in England, will the hon. Member take steps to abolish them altogether?
§ Mr. McKinlay
Is the hon. Gentleman aware that banks in Scotland are more or less controlled by banks in England, and why should the shareholders benefit from this transaction?
§ Mr. Ivor Thomas
As Scotsmen make the pound go very much further than Englishmen, is it not fair that there should be such a charge?