Lords Sitting of 10 April 1826

LOCAL PAYMENT OF BANK NOTES.
The Marquis of Lansdownrose to introduce the bill of which he had given notice before the adjournment. The object of it was to make all notes payable at places different from that in which they were issued, also payable where issued. It was not his wish at that time to trouble their lordships by calling their attention to the provisions of the bill until after it should be printed.
The Earl of Lauderdaleasked whether
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the noble marquis meant that the bill should extend to Scotland?
The Marquis of Lansdownsaid, he certainly intended that Scotland should be included in the operation of the bill.
The Earl of Lauderdalesaid, he should then have occasion to state to their lordships very material reasons why it should not be so extended. He begged the noble marquis to recollect, that at that moment there was a committee sitting to inquire into the banking system of Scotland. Now, if that was the case, he thought it would be more becoming to defer proceeding with this bill until after that committee had made its report.
The Marquis of Lansdownsaid, that the object of the committee was, to inquire into the effect of the circulation of small notes in Scotland and Ireland; but, whatever might be the result of that inquiry, whether the report should be in favour of, or against the continuance of small notes in Scotland it would in no degree affect his view of the subject. If the result should be the discontinuance of small notes, then the present bill would have no effect as to them. If it should be thought advisable to continue them, then the bill would be necessary.
The Earl of Lauderdalesaid, he was prepared to submit to the committee, that if the measure proposed by the noble marquis were adopted, it would destroy thirty or forty establishments in Scotland. He spoke in the hearing of those who knew that banking could not be carried on in Scotland if the branch banks were to be suppressed, as they must be if this bill should pass. He thought that the noble marquis ought to delay the second reading, until the evidence to which he had alluded was before the House.
The Marquis of Lansdownsaid, he saw no impropriety in the course he proposed to pursue. Whether one and two pound notes were to be suffered in Scotland or not, he was of opinion that they should be payable where they were issued. The noble earl might, if their lordships should assent to the principle of the bill, propose in the committee to leave Scotland out of its operation.
The bill was then read a first time.