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Inscribed Stock

bank, stocks, list and transfer

INSCRIBED STOCK. No certificates are issued to the holders of inscribed stock, but their names and the amount of the stock they hold are inscribed in the registers kept for the purpose at the banks which have the management of the stocks. The Bank of England, for instance, holds the registers for the stocks in the Public Funds, and a stockholder wishing to transfer his holding must attend personally at the Bank to sign the transfer in the register, or, if unable to attend personally, the transfer may be effected by his duly authorised attorney. Transferors must in all cases be identified by a stockbroker or other person approved by the Bank. (See NATIONAL DEBT.) In a case in 1907, Mr. Justice Lawrence said : " It is the long-established practice of the Bank of England to permit stockholders to make transfers in the Bank books only when they are identified as the persons owning the stock by persons of one of three classes (I) certain high officers of the Bank of England ; (2) the past and present representatives of private banks ; (3) mem bers of the London Stock Exchange and their clerks, whose names are upon a list kept at the Bank. The privilege of being upon this list of brokers is obtained by the introduction of a member already upon the list. A

member upon the list can have his clerk's name put upon it by signing a document making himself responsible for the acts of his clerk. There are some 3,000 members on the list, and it is clearly a privilege valuable to brokers who deal in Government securities.' Certain stocks domiciled at the Bank of Montreal, Glyn S: Co., Standard Bank of South Africa and the Agent General for South Australia are transferred by deed, although they are called inscribed stocks.

Stock certificates to bearer may be obtained by a holder for various inscribed stocks, which are transferable at the Bank of England.

The receipt for the purchase money, which is given to a purchaser when a transfer of inscribed stock is made, is of no value. It is not required upon a subsequent sale. To obtain a security upon inscribed stock, it I must be transferred into the names of the nominees of the bank ; but if the inscribed stock can be exchanged into bearer bonds• it may be more convenient for a customer to do this in order to give security to a hank.

(See POWER OF ATTORNEY—TRANSFER OF GOVERNMENT STOCK.)