HC Deb 23 May 1928 vol 217 cc1919-20W
Mr. COUPER

asked the Financial Secretary to the Treasury what has been the result of the conference with the managers of the Scottish banks on the question of the bank note issues; and whether he will state the reasons for Scottish bank notes being invalid as legal tender in England when it is now proposed to make the English bank note legal tender in Scotland

Mr. SAMUEL

Following the conference to which my hon. Friend alludes, a small amendment was introduced into the Bill dealing with the situation of the cover for the notes issued by private banks in Scotland. These notes are not legal tender in Scotland and no question of making them legal tender in England has ever arisen. No English bank has the right to issue notes at all except the Bank of England. The existing notes of the Bank of England for £5 and upwards are not and will not become legal tender in Scotland. Notes for £1 and 10s. issued by the Bank of England in its capacity as the central bank will be legal tender throughout the United Kingdom on exactly the same footing as the Treasury notes they replace.