Promises on banknotes that aren't kept

The dishonesty of British banknotes. At least the banknotes from some other countries don't make promises they can't keep.

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[TheLoonwolf]

Aye the Bank Of England website says the same, since 1931 they will not keep the promise! And are silver sterling coins even legal tender? I've never even encountered any in my life!

[quibble72]

@TheLoonwolf No, you won't find any sterling silver coins in circulation as their silver value now far exceeds their face value.

[TheLoonwolf]

@quibble72 What about gold sovereigns, can you use them in shops?

[quibble72]

@TheLoonwolf I think you would have a hard time if you tried in most shops. But there is nothing to stop small independent retailers from accepting them if they so wished.

[TheLoonwolf]

So if you go to the Bank Of England bearing such a note, and demand payment according to the promise they will refuse? I did not know that! Is that legal?

[quibble72]

@TheLoonwolf Yes, I beleive it is legal, but, in my view, morally indefensible.

[2010LOC]

@surprise25778

your an idiot, look at the meaning of intrinsic value, gold and silver is infinite times more valuble than paper. what would u rather have a blank peice of paper or a blank coin?

[MrGrand231]

Is this video a joke?

This video breaks a record for being the most ridiculous video I've ever seen on YT.

How and why would a bank hand you silver coins when the value is constantly changing? By the time you leave the building, it might be worth £2 less. They have then handed you £48 for £50. Sound like a good deal?

Does the terminology confuse you? The promise to pay means that it's an official note that they will always honour. Whereas a precious metal will have no such promise.

[surprise25778]

NO disrespect, but I REALLY don't understand your point I'm afraid.

1) Of course money has intrinsic value. You BUY stuff with it.

2) Why would you expect a bank to swap a note for gold or silver coins? £50 worth of Gold or Silver has no more value than £50 worth of cinema vouchers. Plus, it's a constantly changing price.

[silveradomovies]

I don't know about the subject matter but you have the most clear and soothing speaking voice I've heard on a voice-over.

[J4m3z1]

Money is a funny old thing. They've created notes which at first were meant to be like iou's but have evolved into currency itself. How that works I'm not too sure...

[RichyBMelodies]

The 'Promise to pay the bearer' dates from a time when the notes were not legal tender. Now English banknotes are legal tender there's no reason for anybody to go to the Bank of England and get actual coins in exchange for the notes.

As I say, this was from a time when a business may not accept the bank's note as settlement of debt because it wasn't legal tender back then.

[TheSmithersy]

@TheLoonwolf: I wouldn't, they are worth less if used as currency. They are worth more as bullion I think.