National Provincial Bank - Banknotes

Banknotes

Until the early 20th century, commercial banks in England and Wales were permitted to print their own money, subject to a number of limitations. The Country Bankers’ Act 1826 restricted the issue of banknotes by commercial banks in England and Wales, so that only provincial banks over 65 miles away from London were permitted to print their own money. As the National Provincial Bank was based outside London, it was free to issue its own banknotes. In 1866, when it opened its London headquarters, National Provincial was obliged to give up its note-issuing right and deal only in Bank of England notes.

The Bank Charter Act 1844 began the process which gave the Bank of England exclusive note-issuing powers. Under the Act, no new banks could start issuing notes, and note-issuing banks were barred form expanding their note issue. Gradually, these banks vanished through mergers and closures and their note-issuing powers went with them. The last private English banknotes were issued in 1921 by Fox, Fowler and Company, a Somerset bank. Today, the Bank of England has a monopoly of banknote issue in England and Wales.