Bank Notes (Scotland) Act 1765

The Bank Notes (Scotland) Act 1765^[a] (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.^[1]

Bank Notes (Scotland) Act 1765^[a]

Act of Parliament
Parliament of Great Britain
Long title	An Act to prevent the Inconveniencies arising from the present Method of issuing Notes and Bills by the Banks, Banking Companies, and Bankers, in that Part of Great Britain called Scotland.
Citation	5 Geo. 3. c. 49
Territorial extent	Scotland[b]
Dates
Royal assent	25 May 1765
Commencement	15 May 1766[b]
Repealed	5 November 1993
Other legislation
Amended by	Statute Law Revision Act 1867 Statute Law Revision Act 1871 Statute Law Revision Act 1888
Repealed by	Statute Law (Repeals) Act 1993
Status: Repealed
Text of statute as originally enacted
Revised text of statute as amended
Text of the Bank Notes (Scotland) Act 1765 as in force today (including any amendments) within the United Kingdom, from legislation.gov.uk.

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,^[2] at which point the face value plus 5% should be payable.^[3]: 24 By the 1760s similar clauses were being adopted by the competitor banks in Scotland.^[3]: 26 An observed consequence was that in 1762–4 the banknotes had been trading at 4% below the gold coin value.^[4] Use of such clauses was prohibited by the 1765 Act.^[5]

The act also stipulated that banknotes should not be issued for sums under £1.^[6][7] Prior to the act, some banks had been issuing notes for amounts as low as one shilling or even one penny.^[2]

Subsequent developments

The whole act was repealed by section 1(1) of, and part IV of schedule 1 to, the Statute Law (Repeals) Act 1993.^[1]

Notes

1. The citation of this act by this short title was authorised by section 1 of, and the first schedule to, the Short Titles Act 1896. Due to the repeal of those provisions it is now authorised by section 19(2) of the Interpretation Act 1978.
2. Section 1.