§ Mr. KINGasked the Secretary to the Treasury whether he is aware that three banks in Belfast have issued £30,000,000 in £1 notes and hold only £8,000,000 in cash, and that, in the event of financial relations between Belfast and London being interrupted, these notes could not be honoured; and whether, in order to prevent the loss which might occur, he will use such powers as he possesses either to restrict the circulation of £1 notes or to compel these Irish banks to hold cash sufficient to pay these notes in full?
§ Mr. MONTAGUThe hon. Member does not appear to be correctly informed as regards the note circulation and cash reserve of the three banks in Belfast authorised to issue bank notes. The circulation is restricted by Sections 8 and 19 of the Act 8 and 9 Victoria, c. 37, and the returns made in accordance with statutory requirements to the Commissioners of Inland Revenue show that there has been strict adherence to these limits in every case.