§ MR. SINCLAIR AYTOUNasked the Secretary to the Treasury, Whether he concurs in the opinion expressed by the Solicitor General on Thursday last, in answer to a Question, that it is not accurate to say that £7,000,000 have been converted into a Terminable Annuity under section 4 of the Act 29 Vic. c. 5, the conversion having been made to the extent of £5,000,000 under section 1, and to the extent of the balance only under section 4; and, if he concurs in the opinion expressed by the Solicitor General, if he would be so good as to explain who is responsible for the erroneous statement in the Finance Accounts for 1870–71, page 55, that £7,000,000 was cancelled in exchange for a Terminable Annuity, per Act 29 Vic. c. 5, s. 4?
§ MR. BAXTERPerhaps, Sir, it will be most satisfactory to my hon. Friend if I inform him exactly what has occurred. The Act 29 Vict. c. 5, empowered the Treasury (section 1) to cancel any amount they think fit of Stock held on account of savings banks not exceeding £2,500,000, and it empowered them to cancel a like amount of Stock held on account of Post Office savings banks, or £5,000,000 in all, and to substitute Terminable Annuities for the Stock so cancelled. In virtue of the power so conferred, the Treasury by warrant dated the 15th of February, 1867, cancelled £2,500,000 of Stock standing in the names of the Commissioners for the Reduction of the National Debt, on account of Post Office savings banks; and by warrant dated the 24th of May, 1867, they cancelled £2,500,000 1275 of Stock standing in the same names on account of savings banks. Further, the Act by section 4 empowers the Treasury from time to time, when they consider it advantageous for the public service, to cancel such further amounts of capital Stocks held by the Commissioners for the Reduction of the National Debt for Post Office savings banks, as they shall consider expedient, substituting Terminable Annuities for such capital Stocks. In virtue of the power thus conferred upon them, the Treasury by warrant dated the 19th of May, 1870, cancelled £7,000,000 of Stock standing in the name of the Commissioners for the Reduction of the National Debt, on account of Post Office savings banks, and substituted Terminable Annuities for the amount so cancelled. The statement in the Financial Accounts is therefore correct.