Bankees and Banking.
572
established before May 6, 1844, and lawfully issuing their own notes at that date (p). of England. Outside the sixty-five mile radius the right of the Bank of England to issue notes is shared with all banks established before May 6, 1844, and then lawfully issuing their own notes, which have not since lost the privilege (q). Prohibition A bank not entitled to issue notes is prohibited from attaining upon note the same end by drawing, accepting, making, or issuing any bill issue. of exchange or promissory note payable to bearer on demand, or by borrowing, owing, or taking up money on such bills or notes (r). Sect.
1.
The Bank
Loss of right to issue notes.
1157. A bank loses its right to issue notes by bankruptcy, giving up business, or ceasing to issue bank notes (s) and it may relinquish the right in return for an annual compensation payable by the Bank of England {t). Where the individual existence of a noteissuing bank is lost through its absorption by a non-issuing bank, no manipulation will continue the right of issue to the absorbing bank (a). But where two or more banks, each consisting of not more than six persons, and each possessing the privilege of issuing
notes,
unite, they
may
apply to the Commissioners of Inland
Kevenue to certify the aggregate of the amounts of bank notes each was previously authorised to issue, and the united bank may issue notes up to that amount so long as the number of partners in such united bank shall not exceed six (h). Moreover, where a bank has the right to issue independent of numbers, its absorption of other banks, issuing or not issuing, will not affect
its
right
(c).
(^j) Bank of England Act, 1833 (3 & 4 Will. 4, c. 98), s. 2 {Capital and Counties Bank v. Ba7ik of England (1889), 61 L. T. 516) Bank Charter Act, 1844 (7 & 8 Vict, It has been laid down by some writers that this limit of six has been c. 32), s. 11. enlarged to ten by the Joint Stock Banking Companies Act, 1857 (20 & 21 Vict,
12, repealed and re-enacted by the Companies Act, 1862 (25 & 26 Vict. c. 89), Third Schedule, Part II. This is not so. These Acts and the Joint Stock Banks Act, 1844 (7 & 8 Vict. c. 113), which fixed the limit at six, apart from letters patent, are simply Acts regulating the formation of new companies for banking business, a term which, afier the Bank Charter Act, 1844 (7 & 8 Vict. c. 32), Sect. 19 of the Joint acquired the meaning of deposit apart from issue business. Stock Banking Companies Act, 1857 (20 & 21 Vict. c. 49), expressly enacted that nothing therein contained shoukl atiect the provisions of the Bank Charter Act, 1844 (7 & 8 Vict. c. 32), which enacted by sect. 11 that it should not be lawful tor any company or partnership then consisting of six or less persons to issue bank notes at any time after tlie number of partners therein should exceed six in the whole. Bank Notes Act, 1828 {q) Country Bankers Act, 1S26 (7 Geo. 4, c. 46) Bank of England Act, 1833 (3 & 4 Will. 4, c. 98) Bank (9 Geo. 4, c. 23) Charter Act, 1844 (7 & 8 Vict. c. 32), ss. 10, 11 {Capital andCounties Bankv. Bank of England, supra). (r) Bank Charter Act, 1844 (7 & 8 Vict. c. 32), s. 11. See also definition of bank note, Stamp Act, 1854 (17 & 18 Vict. c. 83), s. 11, where "holder" must, however, be read as equivalent to bearer." Compare Bank Charter Act, 1844 (7 & 8 Vict. c. 32), s. 26, which gives special power to draw, accept, or indorse bills not being payable to bearer on demand. See note {I), p. 569, ante. (s) Bank Charter Act, 1844 (7 & 8 Vict. c. 32), s. 12. (0 Ihid., s. 24 Bankers' Compositions Act, 1856 (19 & 20 Vict. c. 20). {a) A.-G. V. Birkbeck (1884), 12 Q. B. D.. 605. (h) Bank Charter Act, 1844 (7 & 8 Vict. c. 32), s. 16. (c) Compare Capital and Counties Bank v. Bank of England, supra, a case of recovering compensation for ceasing to issue, but the principle is the same, the c.
49),
R.
205,
s.
identity of the
bank not being
lost.
