Sterling banknotes
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Sterling banknotes are the banknotes of the United Kingdom and British Islands, denominated in pounds sterling (GBP).
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[edit] Issuing banks
Pound sterling banknotes are issued:
- In England and Wales by the Bank of England.
- These are legal tender in England and Wales, and generally accepted throughout the UK.
- These are recognised currency in Scotland and are, in theory, generally acceptable throughout the UK. However, many people outside Scotland are unfamiliar with the notes and they may often be refused. Branches of the Scottish note-issuing banks situated in England dispense Bank of England notes, and may not dispense their Scottish notes from those branches.[1]
- These are rarely seen outside Northern Ireland. They are often not accepted in England and Wales without some explanation.
Sterling banknotes are also issued in local designs by the following British dependencies outside the UK:
The following currencies are distinct under ISO 4217 but are at par with Sterling.
Bank of England notes are the only banknotes that are legal tender in England and Wales. Scottish, Northern Ireland, Jersey, Guernsey and Manx banknotes are not legal tender in England and Wales. However, they are not illegal under English law and creditors and traders may accept them if they so choose.
In Scotland and Northern Ireland no banknotes – not even ones issued in those nations – are legal tender, although Bank of England one pound notes were when they existed: Bank of England notes of under five pounds value are legal tender. Scottish and Northern Irish notes are 'promissory notes' (defined as legal currency), essentially cheques made out from the bank to 'the bearer', as the wording on each note says.
The UK Treasury has proposed extending legal tender status to Scottish banknotes. The proposal has been opposed by Scottish nationalists who claim it would reduce the independence of the Scottish banking sector.[2]
Most of the notes issued by the note-issuing banks in Scotland and Northern Ireland have to be backed by Bank of England notes held by the issuing bank. The combined size of these banknote issues is well over a billion pounds. To make it possible for the note-issuing banks to hold equivalent values in Bank of England notes, the Bank of England issues special notes with a denomination of one million pounds for internal use by the other banks[3].
- ^ Royal bank of Scotland Group - 'The history of our banknotes'
- ^ The Scotsman, 22 September 2005
- ^ Other British Notes, Bank of England web site
[edit] Issuers
[edit] England and Wales
[edit] Bank of England notes
- see also Bank of England article
In 1921 the Bank of England gained a legal monopoly on the issue of banknotes in England and Wales, a process that started with the Bank Charter Act of 1844 when the ability of other banks to issues notes was restricted.
The bank issued its first banknotes in 1694, although until 1745 they were written for irregular amounts, rather than predefined multiples of a pound. It tended to be times of war, which put inflationary pressure on the British economy, that led to greater note issue. In 1759 during the Seven Years' War, when the lowest value note issued by the Bank was £20, a £10 note was issued for the first time. In 1793, during the war with revolutionary France, the Bank issued the first £5 note. Four years later, £1 and £2 notes appeared, although not on a permanent basis. Notes did not become entirely machine-printed and payable to the bearer until 1855.
At the start of World War I, the government issued £1 and 10-shilling Treasury notes to supplant the sovereign and half-sovereign gold coins. The first coloured banknotes were issued in 1928, and were also the first notes to be printed on both sides. World War II saw a reversal in the trend of warfare creating more notes when, in order to combat forgery, higher denomination notes (at the time as high as £1,000) were removed from circulation.
As of October 2006 the Bank of England banknotes in circulation, known as Series E, do not exceed £50. The notes are as follows:
- 5 pound note depicting Elizabeth Fry, showing a scene with her reading to prisoners in Newgate Prison.
- 10 pound note depicting Charles Darwin, a hummingbird and the HMS Beagle.
- 20 pound note depicting Sir Edward Elgar, with a view of the west face of Worcester Cathedral.
- 50 pound note depicting Sir John Houblon, with a view of his house in Threadneedle Street.
As of 2005, they are signed by the Chief Cashier, Andrew Bailey.
All the notes issued since Series C in 1960 also depict Elizabeth II of the United Kingdom in full view facing left and as a watermark, hidden, facing right; recent issues have the EURion constellation around. The custom of depicting historical figures on the reverse began with Series D in 1970. Previous banknotes have depicted Sir Isaac Newton, the Duke of Wellington, Florence Nightingale, William Shakespeare, Sir Christopher Wren, George Stephenson, Charles Dickens and Michael Faraday.
| Series D | ||||
|---|---|---|---|---|
| Value | Reverse portrait | Issued | Withdrawn | |
| £1 | Isaac Newton | 9 February 1978 | 11 March 1988 | |
| £5 | Duke of Wellington | 11 November 1971 | 29 November 1991 | |
| £10 | Florence Nightingale | 20 February 1975 | 20 May 1994 | |
| £20 | William Shakespeare | 9 July 1970 | 19 March 1993 | |
| £50 | Christopher Wren | 20 March 1981 | 20 September 1996 | |
| Series E | ||||
| £5 | George Stephenson | 7 June 1990 | 21 November 2003 | |
| £10 | Charles Dickens | 29 April 1992 | 31 July 2003 | |
| £20 | Michael Faraday | 5 June 1991 | 28 February 2001 | |
| £50 | John Houblon | 20 April 1994 | in use | |
| Series E revision | ||||
| £5 | Elizabeth Fry | 21 May 2002 | in use | |
| £10 | Charles Darwin | 7 November 2000 | in use | |
| £20 | Edward Elgar | 22 June 1999 | in use | |
| Series F | ||||
| £20 | Adam Smith | Spring 2007 | not yet issued | |
On 29 October 2006 the Governor of the Bank of England announced that, to herald the launch of the new Series F banknotes from Spring 2007, a new £20 was to be issued featuring the Scottish economist, Adam Smith.
The Bank of England Series D one pound note was discontinued in 1984, having been replaced by a pound coin the year before, and was officially withdrawn from circulation in 1988. Nonetheless, all banknotes, regardless of when they were withdrawn from circulation may be presented at the Bank of England where they will be exchanged for current banknotes.
Higher-value notes are used within the banks – particularly the £1 million and £100 million notes used to maintain parity with Scottish and Northern Irish notes. Banknotes issued by Scottish and Northern Irish banks have to be backed by Bank of England notes (other than a small amount representing the currency in circulation in 1845), and special million pound notes are used for this purpose. These resemble simple IOUs and bear no aesthetic design features. [1]
[edit] Scotland
Scottish banknotes are unusual in that they are technically not legal tender anywhere in the UK - not even in Scotland - they are in fact promissory notes. Indeed, no banknotes (even Bank of England notes) are now legal tender in Scotland - although like debit cards and credit cards, they are still used as money because they are commonly understood to be money.
[edit] Bank of Scotland notes
In circulation:
- 5 pound note featuring a vignette of oil and energy
- 10 pound note featuring a vignette of distilling and brewing
- 20 pound note featuring a vignette of education and research
- 50 pound note featuring a vignette of arts and culture
- 100 pound note featuring a vignette of leisure and tourism
All the notes also depict Sir Walter Scott who was instrumental in retaining the right of Scottish banks to issue their own notes in 1826.
[edit] Royal Bank of Scotland notes
In circulation are:
- 1 pound note featuring Edinburgh Castle
- 5 pound note featuring Culzean Castle
- 10 pound note featuring Glamis Castle
- 20 pound note featuring Brodick Castle
- 50 pound note featuring Inverness Castle
- 100 pound note featuring Balmoral Castle
All these notes also depict Lord Ilay (1682-1761), first governor of the bank.
Occasionally the Royal Bank issues commemorative banknotes. Examples are the £20 note for the 100th birthday of Queen Elizabeth, the Queen Mother in 2000, and the £5 note honouring veteran golfer Jack Nicklaus in his last competitive Open competition at St Andrews in 2005 (an issue of two million notes). These notes are much sought-after by collectors and they rarely remain long in circulation.
[edit] Clydesdale Bank notes
- 5 pound note featuring Robert Burns on the obverse and a vignette of a field mouse from Burns' poem To a Mouse on the reverse
- 10 pound note featuring Mary Slessor on the front and a vignette of a map of Calabar and African missionary scenes on the back
- 20 pound note featuring Robert the Bruce on the front and a vignette of the Bruce on horseback with the Monymusk Reliquary against a background of Stirling Castle on the back
- 50 pound note featuring Adam Smith on the front and a vignette of industry tools against a background of sailing ships on the back
- 100 pound note featuring Lord Kelvin on the front and a vignette of the University of Glasgow on the back
The Clydesdale also occasionally issue special-edition banknotes, such as a 10 pound note celebrating the bank's sponsorship of the Scotland team at the 2006 Commonwealth Games.
[edit] Northern Ireland
[edit] Bank of Ireland notes
All Bank of Ireland notes feature the Queen's University of Belfast on the obverse. The principal difference between the denominations is their colour and size.
[edit] First Trust Bank notes
First Trust Bank is the successor to the Allied Irish Banks (AIB). It was formed by a merger of the Northern Irish parts of AIB and TSB. AIB was itself the successor to the Provincial Bank of Ireland following another merger. The banknotes issued by First Trust Bank continue the series started by the Provincial Bank of Ireland, also issued by AIB.
First Trust Bank's current notes depict generic people of Northern Ireland on the front, alternately male and female, but with a pair of older people on the £100 note. The obverse generally features designs associated with the Spanish Armada, or coastal features.
- 10 pound note featuring the vessel Girona (galleass) on the obverse
- 20 pound note featuring the chimney at Lagada Point on the obverse
- 50 pound note featuring a commemorative medal on the obverse
- 100 pound note featuring the Armada on the obverse
A £5 note featuring Dunluce Castle on the obverse was issued by the Provincial Bank of Ireland and by AIB, but has not been issued by First Trust Bank.
[edit] Northern Bank notes
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|---|
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- 5 pound polymer note featuring the U.S. space shuttle
- 10 pound note featuring J. B. Dunlop on the front and the portico of Belfast's city hall on the back
- 20 pound note featuring Harry Ferguson on the front and the portico of Belfast City Hall on the back
- 50 pound note featuring Sir S.C. Davidson on the front and the portico of Belfast City Hall on the back
- 100 pound note featuring Sir James Martin on the front and the portico of Belfast City Hall on the back
Following the theft of £22 million from its money handling centre in Belfast on 22 December 2004, allegedly by the Provisional IRA, Northern Bank announced on 7 January 2005 that all its notes were to be recalled and reissued in different colours and styles, and using the bank's new logo. The reissue began on 14 March 2005 and was scheduled to take one month; old notes remain exchangeable at branches of Northern Bank. See Northern Bank robbery.
The principal colours of Northern Bank notes of greater than £5 face value were changed with the 2005 reissue, and are now (former colour in brackets):
- £10 green (brown)
- £20 blue (purple)
- £50 purple (green)
- £100 red (black)
The logo displayed on these new notes is now itself out of date. The current logo is taken from Northern's new parent company, Danske Bank.
[edit] Ulster Bank notes
Ulster Bank's current notes all share a rather plain design of a view of Belfast harbour flanked by landscape views; the design of the reverse is dominated by the bank's coats-of-arms. The principal difference between the denominations is their colour and size. More recent notes incorporate the NatWest chevron, as previously used by the Ulster Bank, rather than their new logo, which is based on that of the Royal Bank of Scotland
In November 2006 Ulster Bank is to issue its first commemorative banknote - an issue of one million £5 notes commemorating the first anniversary of the death of Northern Irish footballer, George Best. This will be the first Ulster Bank banknote to incorporate their new logo.
[edit] Channel Islands
[edit] States of Jersey notes
Main article: Jersey pound
The Treasurer of the States of Jersey, Channel Islands, holds £1.10 in Bank of England notes for each £1 issued, making the Jersey Pound a very strong currency. The current notes depict Queen Elizabeth II on the front and various landmarks of Jersey or incidents in Jersey history on the reverse. The watermark is a Jersey cow
- 1 pound note, green, St. Helier Parish Church (In 2004, a special edition £1 note is in general circulation alongside the St. Helier Parish Church note; this commemorative note marks the 800th anniversary of the division of the Duchy of Normandy in 1204 and the design consequently includes Mont Orgueil Castle and other historic symbols)
- 5 pound note, purple, La Corbière, lighthouse
- 10 pound note, red, The Death of Major Pierson, Battle of Jersey, 1781
- 20 pound note, blue, Saint Ouen's manor, Jersey
- 50 pound note, grey, Government House
[edit] States of Guernsey notes
Main article: Guernsey pound
The Guernsey Pound is legal tender only in Guernsey, but also circulates freely in Jersey. Elsewhere it can be exchanged in banks and bureaux de change. In addition to coins, the following banknotes are used:
- 1 pound note, green, Daniel De Lisle Brock, Bailiff of Guernsey (1762 - 1842) and Royal Court, St Peter Port (1840) on front and the Market, St Peter Port on back
- 5 pound note, pink, Queen Elizabeth II and the Town Church, St Peter Port on front, and Fort Grey and Hanois Lighthouse (1862) on the back
- 10 pound note, blue/orange, Queen Elizabeth II and Elizabeth College, St Peter Port on the front and Saumarez Park, Les Niaux Watermill, Le Trepid Dolmen on the back
- 20 pound note, pink, Queen Elizabeth II and St James Concert Hall, St Peter Port on the front and Vale Castle and St Sampson's Church on the back
[edit] Isle of Man
Main article: Manx pound
The Manx pound is legal tender only on the Isle of Man.
[edit] The monarch on banknotes
Queen Elizabeth II was not the first British monarch to have her face on UK banknotes. Georges II, III and IV appeared on early Royal Bank of Scotland notes and George V appeared on 10 shillings and 1 pound notes issued by the Treasury between 1914 and 1928. However, prior to the issue of its Series C banknotes in 1960, Bank of England banknotes did not depict the monarch. Today, notes issued by the other UK note issuing banks do not depict the monarch.
The monarch is depicted on banknotes issued by the Crown dependencies.
[edit] See also
[edit] External links
- Bank of England banknote page
- Bank of England Other Banknotes page
- Committee of Scottish Clearing Bankers home page
- The Royal Bank of Scotland banknote page
- RBS Jack Nicklaus commemorative £5 note description {PDF file}
- Isle of Man banknotes (IOM Treasury)
[edit] References
- Bank of England website [2]
