Scottish National Dictionary (1700–)
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First published 1965 (SND Vol. VI).
This entry has not been updated since then but may contain minor corrections and revisions.
Quotation dates: 1765-1795, 1934
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OPTIONAL, adj. In Sc. Banking phr.: optional clause, see quots. The practice which began with the Bank of Scotland in 1730 was prohibited by law in 1766. Hist.Sc. 1765 Hist. in Ann. Reg. 90:
No bank . . . can issue notes after the 15th of May 1766, containing optional clauses; but such optional notes as are then in the circle may freely pass from hand to hand during any after period.Sc. 1776 A. Smith Wealth of Nations (1869) ii. ii. I. 327:
Some years ago the different banking companies of Scotland were in the practice of inserting into their bank notes . . . an Optional Clause, by which they promised payment to the bearer, either as soon as the note should be presented, or, in the option of the directors, six months after such presentment, together with the legal interest for the said six months.Ayr. 1795 Stat. Acc.1 XI. 175:
To the patriotic exertions of this truly great man [Earl of Eglinton], his country chiefly owes the act of parliament, which abolished what was called the optional clause of the Scotch banks. By the above clause, the banks had it in their power, to refuse payment of their notes, for no less than six months after it had been demanded.Sc. 1934 I. F. Grant Econ. Hist. Scot. 233:
In a lawsuit brought by one of the creditors of the bank [of Scotland], the House of Lords declared that its notes were convertible on demand. To guard itself, the bank introduced “the optional clause” on its notes, promising payment at once or in six months' time, with interest, at the option of the directors.
