The Marquis of Lansdownrose to call their lordships' attention, and particularly the attention of the noble earl opposite, to a topic which had been mentioned on a former occasion. He alluded to the practice of many bankers issuing promissory notes of making them payable at some place distant from where they were issued. This was a practice which could not be defended. He knew that by the bill which had lately received their lordships' sanction, bankers would at the end of three years be obliged to make their notes payable at the place where they were issued; but he thought this evil ought not to be allowed to continue so long. When the practice had been mentioned on a former occasion, the noble earl opposite had doubted whether it was so extensive as was stated. Now, he had heard of fifty-five banks which issued promissory notes that were not payable out of London. He had heard, indeed, that one bank, as far off as Aberdeen, made its notes payable in London. The branch banks of the Bank of Ireland issued the notes of that Bank payable only in Dublin, and circulated them all over the south of Ireland; at present those notes were at a discount, and in the large towns of the south, such as Cork, could not be disposed of without the loss of 4d. This he knew was the case within the last fortnight. Great mischief must result from this practice, and the legislature ought not to allow its existence. He was at a 41 loss how to frame a motion on the subject, so as to produce any information to be laid on their lordships' table; but if the noble earl opposite would give him assistance, he might, perhaps, accomplish his object. At present, he did not know to what office an order, requiring to be laid on their lordships' table, an account of the number of banks issuing notes not payable at the spot where they were issued, could be sent, or he should certainly make a motion to that effect. Their lordships must recollect, that it was not only one and two pound notes that were so payable, but larger notes; and he thought the names of the bankers who did this ought to be known to the public. Though he should not conclude by making any motion, he was glad to take that opportunity of calling the attention of the noble earl opposite to the subject.
The Earl of Liverpoolsaid, he should be very ready to give the noble marquis any assistance in his power in obtaining the information he wished, but he did not know how it could be accomplished. It was desirous on many accounts to correct the evil he had pointed out; but, as the law stood, he did not see how it could be immediately corrected. A clause had been added to the bill, which had lately received their lordships' assent, and which would in a day or two receive the royal assent, by a noble friend of his, compelling all banks, at the period when that act came into operation, to pay their notes at the places where they were issued. But it was not supposed possible, with any regard to what he might call vested rights, to make that clause immediately operative. If the notes were now to be stamped, he should say, certainly, that none should be issued to bankers who did not come under that obligation; but the notes were already stamped, and most of those which were to circulate for the next three years were most probably already in circulation. It had, therefore, been thought, that the clause could not be brought into operation before the period assigned for the act to take effect. Agreeing in principle with the noble marquis, he thought their lordships might, in any bill which was brought in to regulate the issues of notes either in Scotland or Ireland, make such a clause a part of the bill, and it might be brought immediately into operation. Even if they were not to legislate in other respects for Scotland and Ireland, they might legislate in this.
The Marquis of Lansdownsaid, he was sensible that there was a difficulty in the way of any proposition on the subject with respect to England; but as to Ireland and Scotland he saw none. As much evil might arise in those countries from the circulation of small notes not payable at the place where they were issued, he would, after the Easter recess, call their lordships' attention to the subject. This he considered indispensable, whatever might be the nature of any measure which might emanate from the committee.
The Lord Chancellorsaid, that in the last session but one, a case had been brought before their lordships by writ of error, in which a promissory note or bill of exchange had been made payable in London. A question had arisen, whether it was sufficient that a demand for payment of that note had been made in the country, or whether it must be made in London? On this subject the judges were divided; several of them thought it was not necessary that the demand should be made in London; but the majority, and their lordships were of the same opinion, thought that it was necessary to make the demand in London, and that the declaration should contain an averment that it had been made. But since that period, an act had been passed, making promissory notes payable in London, demandable elsewhere, unless it was expressly stated on the note that it was payable only in London. If this were the case, country bank notes fell under this law; and if not made payable only in London, payment of them might be demanded at the place where they were issued. He would examine the law on the subject, to see if the opinion he had thrown out was correct, and would report the result to their lordships.
The Earl of Limerick,as an Irishman, was thankful to the noble marquis for having brought this subject before their lordships. The notes of the Dublin Bank were payable only in Dublin.