The Bank Notes (Scotland) Act 1765
[The citation of this Act by this ]short title
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was authorised by the Short Titles Act 1896
The Short Titles Act 1896 (59 & 60 Vict c 14) is an Acts of Parliament in the United Kingdom, Act of the Parliament of the United Kingdom. It replaces the Short Titles Act 1892.
This Act was retained for the Republic of Ireland by section 2(2)(a ...
, section 1 and the first schedule. Due to the repeal of those provisions it is now authorised by section 19(2) of the Interpretation Act 1978
The Interpretation Act 1978 is an Act of the Parliament of the United Kingdom. The Act makes provision for the interpretation of Acts of Parliament, Measures of the General Synod of the Church of England, Measures of the Church Assembly, subord ...
. (
5 Geo. 3. c. 49) was an Act of the Parliament of Great Britain that introduced restrictions on the use of banknotes by the Scottish banks. The act was from the Fourth Session of the Twelfth Parliament of Great Britain at Westminster; beginning May 19, 1761 and lasting until January 10, 1765.
The
Bank of Scotland had introduced an "optional clause" on their banknotes in 1730 whereby its conversion into gold on demand could be delayed for up to 6 months,
at which point the face value plus 5% should be payable.
By the 1760s similar clauses were being adopted by the competitor banks in Scotland.
An observed consequence was that in 1762–4 the banknotes had been trading at 4% below the gold coin value. Use of such clauses was prohibited by the 1765 Act.
The Act also stipulated that banknotes should not be issued for sums under £1.
Prior to the Act, some banks had been issuing notes for amounts as low as one shilling or even one penny.
The Act was repealed in 1993.
References
Further reading
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External links
{{UK legislation
Great Britain Acts of Parliament 1765
Economy of Scotland
Currencies of Scotland
Banking legislation in the United Kingdom