3. It shall not be lawful for the Bank of England to retain in the issue department of the said Bank at any one time an amount of silver bullion exceeding one-fourth part of the gold coin and bullion at such time held by the Bank of England in the issue depart ment.
4. All persons shall be entitled to demand from the issue department of the Bank of England, Bank of England notes in exchange for gold bullion, at the rate of 1:3 17s. 9d. per ounce of standard gold : Provided always, that the said Governor and Company shall in all cases be entitled to require such gold bullion to be melted and assayed by persons approved by the said Governor and Company at the expense of the parties tendering such gold bullion.
5. Provided, always, that if any hanker who on the fith day of May. 1S44, was issuing his own bank notes shall cease to issue his own bank notes, it shall be lawful for her Majesty in Council at any time after the cessation of such issue, upon the application of the said Governor and Company, to authorise and empower the said Governor and Company to increase the amount of securities in the said issue department beyond the total sum or value of fourteen million pounds, and there upon to issue additional Bank of England notes to an amount not exceeding such increased amount of securities specified in such Order in Council, and so from time to time : Provided always, that such increased amount of securities specified in such Order in Council, shall in no case exceed the pro portion of two-thirds the amount of bank notes which the banker so ceasing to issue may have been authorised to issue under the provisions of this Act ; and every such Order in Council shall be published in the next succeeding London Gazette.
" 7. The said Governor and Company of the Bank of England shall be released and discharged from the payment of any stamp duty, or composition in respect of stamp duty, upon or in respect of their promissory notes payable to bearer on demand ; and all such notes shall be and continue free and wholly exempt from all liability to any stamp duty whatsoever.
" 9. In case, under the provisions herein before contained, the securities held in the said issue department of the Bank of England shall at any time be increased beyond the total amount of fourteen million pounds, then and in each and every year in which the same shall happen, and so long as such increase shall continue, the said Governor and Company shall, in addition to the said annual sum of Z1S0,000, make a further payment or allowance to the public, equal in amount to the net profit derived in the said issue department during the current year from such additional securities, after deducting the amount of the expenses occasioned by the additional issue during the same period, which expenses shall include the amount of any and every com position or payment to be made by the said Governor and Company to any banker in consideration of the discontinuance at any time hereafter of the issue of bank notes by such banker." The position of the authorised issue of the Bank of England is as follows : Authorised by the Act of 1 . . 13.111)1),00» Autborised by Order in Council : 1555. Dee 7 •175,411)11 I I. .1111" In I 73,41i111 1 s))4). Fib. 21 350,1)114) 1S81. April 1 £,750,000 1887. Sept. 15 450,000 1890. Feb. x '250,000 1894. Jan. 29 350,000 1900. Mar. 3 ...... 975.000 1901. Aug. 11 400,000 1903. Aug. 10 '75,000 Total fixed issue 118,450,000 (See BANK NOTES, BANK OF ISSUE, BANK RETURN.)