ABSTRACT
In May 1826 the Government placed beyond doubt the right of the Bank of England to set up provincial branches, and it pressed for their immediate establishment. Discount accounts 'for circulation' at specially favourable rates were granted from 1830 onwards to such banks as gave up issuing their own and other country bank notes and agreed not to re-issue bills. 'Accommodation bills' were frowned upon by the Branch Banks Committee in 1826, and it was explained in 1829 that discounts granted by the Branch Bank were 'presumed to be occasional accommodations'. To be eligible for discount at the Branch, bills should be the result of 'bona fide transactions' and should 'really represent the Trade of the district'. There is no doubt that the smallness of the discount business at the Swansea Branch from the late 1830s onwards was partly due to penetration of the area by joint-stock banks.
