Banknotes of the pound sterling
This article concerns British Banknotes, the banknotes of the United Kingdom, denominated in Pounds (GBP).
For related topics see:
Banknotes were issued because carrying around a lot of precious metal was cumbersome. Banknotes were originally a claim to an amount of precious metal stored in a vault somewhere. In this way the stored value (usually in gold or silver coins) backing the banknote could transfer ownership in exchange for goods or services. So long as each circulating banknote was backed by the appropriate amount of metal the storage and representation of the stored metal constituted the 100% reserve banking system, and the currency system is one based on specie money, which takes the forms of commodity money or representative money because it is backed by something of intrinsic value.
Today banknotes are not backed by any intrinsic value. Circulating banknotes are not backed by any reserve of value, but only on the faith that the paper will be honored when it is offered to pay for goods or services. A £100 note is no harder to produce than a £1 note, so the £100 note does not represent any greater intrinsic value than the £1 note. This system of currency with no intrinsic value is known as fiat money.
Issuing Banks
Pound sterling banknotes are issued by
- the Bank of England accepted throughout the UK;
- the Bank of Scotland (generally accepted throughout the UK);
- the Royal Bank of Scotland;
- the Clydesdale Bank (generally accepted throughout the UK);
- Northern Bank and Ulster Bank (rarely seen outside Northern Ireland).
Sterling banknotes are also issued by
- the Government of the Isle of Man and
- the States of Jersey and
- the States of Guernsey, but their notes are not generally accepted off their own islands (although Guernsey notes can sometimes be found in Jersey and vice versa).
Bank of England Notes
The Bank of England has a legal monopoly on the issue of Sterling banknotes in England and Wales.
As of April, 2003 the Bank of England banknotes in circulation are:
- 5 pound note with George Stephenson or a new one with Elizabeth Fry
- 10 pound note with Charles Dickens (to be withdrawn, July 2003) or a new one with Charles Darwin
- 20 pound note with Sir Edward Elgar
- 50 pound note with John Houblon
All the notes also depict Elizabeth II of the United Kingdom.
The Bank of England 1 pound note was discontinued in 1984, being replaced by a pound coin - see British coinage.
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 the 1840s.
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.
- 100 pound note featuring Balmoral Castle.
All the notes also depict Lord Ilay (1682-1761), first governor of the bank.
Clydesdale Bank Notes
- 5 pound note featuring Robert Burns on the front and a vignette of a fieldmouse from Burns' "Ode to a Mouse" on the back.
- 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 Glasgow University on the back.