Currency and Bank Notes Act 1939
| Jurisdiction | UK Non-devolved |
| Citation | 1939 c. 7 |
| Year | 1939 |
Currency and Bank Notes Act, 1939
(2 & 3 Geo. 6.) CHAPTER 7.
An Act to amend the law with respect to the Issue Department of the Bank of England, the Exchange Equalisation Account and the issue and place of payment of Bank of England notes.
[28th February 1939]
Be it enacted by the King's most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, as follows:—
1 Amount of fiduciary note issue.
1. The fiduciary note issue shall, unless and until, after the commencement of this Act, it is reduced under subsection (2) of section two of the Currency and Bank Notes Act, 1928, or increased under subsection (1) of section eight of that Act, be three hundred million pounds and accordingly—
2 Valuations of assets of Issue Department.
(1) The assets held in the Issue Department of the Bank of England (in this Act referred to as ‘the Department’) shall be valued on the day on which this Act comes into operation and thereafter once in each week.
(2) For the purposes of every such valuation, the assets shall be valued at such prices as may be certified by the Bank of England to be the current prices of those assets respectively on the day of the valuation, ascertained in such manner as may be agreed between the Treasury and the Bank:
Provided that adjustments may, if the Treasury so direct, be made in respect of interest affecting the current price of any securities and, in the case of securities standing at a premium, in respect of that premium.
(3) If, as the result of any such valuation, the value of the assets then held in the Department differs from the total amount of the Bank of England notes then outstanding, there shall be paid to the Department from the Exchange Equalisation Account (in this Act referred to as ‘the Account’) or to the Account from the Department such sum as will counteract that difference, and separate payments may be made in respect of differences arising from changes in the value of gold...
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