§ MR. KERANS (Lincoln)asked Mr. Chancellor of the Exchequer, Whether, having regard to the fact that interest upon Consols New and Reduced Annuities has now been reduced to £2 15s. per cent, it will he necessary to introduce legislative measures dealing with the valuation of annuities under the Schedule to the Act entitled 16 & 17 Vict. c. 51?
§ THE CHANCELLOR OF THE EXCHEQUER (Mr. GOSCHEN) (St. George's, Hanover Square)As the hon. Gentleman is doubtless aware, the valuation in the tables annexed to that Act is based upon a rate of interest of 4 per cent, so that there has always been a difference in favour of the annuitant between this rate and that at which the State can borrow. This difference has, of course, been increased by the recent reduction of interest on the National Debt, and it is a fair question whether the time has not come for diminishing it. This subject is engaging my attention, with many others arising out of the conversion; but the calculations involved in a revaluation of the annuities are so complicated that I cannot hope to be able to deal with it in the course of the present Session.