§ MR. W. H. SMITHasked Mr. Chancellor of the Exchequer, Whether the Letter sent from the Inland Revenue, dated the 4th August 1871 (of which the following is a Copy), was written at the instance or with the knowledge of the Chancellor of the Exchequer:—
§ "Inland Revenue, Somerset House,
§ "London, W.C., 4th August, 1871.
§ "Gentlemen,—The attention of the Commissioners of Inland Revenue having been recently directed to the fact that cheques drawn on behalf of benefit building societies on their bankers have been very generally but erroneously regarded as exempt from Stamp Duty, I am directed to inform you that these Documents are liable to Stamp Duty like other cheques, and to remind you that any person who pays any cheque liable to duty and not duly stamped incurs a penalty of £10.
§ "I am, Gentlemen, your obedient Servant,
§ "WM. LOMAS."
§ And, whether, considering the many inconveniences which would arise, the Chancellor of the Exchequer will instruct the Solicitor to the Inland Revenue to withdraw the above letter until after next Michaelmas Term, in order that the opinion of the Court of Exchequer of Pleas may be taken on the validity of the exemption now claimed by building societies?
§ THE CHANCELLOR OF THE EXCHEQUER, in reply, said, the letter in question was not written at his instance, or with his knowledge. The department, however, were advised that the question as to the liability of Friendly Societies' cheques to stamp duty was free from doubt, and a large amount of revenue was involved. An offer had been made to Mr. Hyam, the gentleman who appeared on behalf of the Friendly Societies, to refer the whole question to the Court of the Exchequer, for an immediate decision; but the offer was refused. After that refusal, he certainly was not disposed to accede to the request of the hon. Member, as by so doing he should be postponing the possibility of getting a decision for three months, or even longer.