BANKS OF ISSUE. It is now the exception to find in a given country more than one bank of issue, this being the cen tral bank, to which control over the paper currency is a necessary part of its supervision of credit conditions.
In France, Belgium, Holland, Scandinavia, Italy, the Successor States (q.v.), Spain and Portugal the note issue is monopolized by the central bank. In Germany notes are issued by the Reichs bank and the Rentenbank. In Poland, 1927 to 1939, the issue of notes was in the hands of the Bank Polski (founded 1924). In Canada, the note issuing privilege of the "Chartered Banks" was curtailed in 1935 and the sole right vested in the new Bank of Canada, the central bank; issues of other banks will be retired by 1946. In the U.S.A., in addition to the notes of the Federal Reserve Board, the national banks issue notes based upon holdings of government securities. In India the Reserve Bank of India, constituted under an Act passed by the Council of State in commenced operations on April 1, 1935, and became the sole note issuing authority; in Australia issue is in the hands of the Com monwealth Bank, and in South Africa in those of the South African Reserve Bank. In Argentina, Chile, Colombia, Brazil, Uruguay, Bolivia and Peru there is a local monopoly of issue in the hands of a central bank; in Venezuela note issue is still in private hands.
In the Far East, the Bank of Japan and the Bank of Java each has a monopoly of issue; in China since 1935 the Central Bank of China, the Bank of China, and the Bank of Communications have had the issuing of notes ; notes of other banks, have, how ever, been continued in circulation for an unspecified period.
In England and Wales, only the Bank of England now issues notes : Fox, Fowler & Co. having relinquished their rights under the Bank Act of 1844 on amalgamating with Lloyds Bank in 1921. In Scotland, under the Bank Act of 1845, there are eight banks of issue, with the following authorized circulations: Bank of Scot land, f396,852; Royal Bank of Scotland, £216,451; British Linen Bank, £438,024; Commercial Bank of Scotland, 1374,880; Na tional Bank, £297,024; Union Bank, £454,346; Clydesdale Bank, North of Scotland Bank, £224,452. Any notes in ex cess must be covered by gold or other legal tender; the average circulation is in the neighbourhood of £24,300,000. In Northern Ireland there are, under the Bankers (Northern Ireland) Act, 1928, six banks of issue: the Bank of Ireland, £895,678; the Provincial Bank, £316,192; the Belfast Banking Company, 1350, coo; Northern Bank, £244,000; the Ulster Bank, £290,000; the National Bank, £2I2,972. The total circulation (including covered excess) is about £3,400,000. Eire, under the Currency Act, 1927, has eight, viz., Bank of Ireland, £1,760,000; Hibernian, £550,000; National, £1,318,000; Northern, £180,00o; Munster and Leinster, £900,000; Provincial, £649,000; Royal, £273,000; Ulster, £370, 000; total circulation is approximately £5,070,000; the quotas allowed by the Currency Commission are subject to triennial revision.