§ MR. KEAY (Elgin and Nairn)I beg to ask the Chancellor of the Exchequer, as the moneys of the Sinking Fund are to be all re-lent or re-lendable for long periods under the Land Purchase Bill, if he would state what monies will be available for the redemption of the original land Stock?
§ MR. GOSCHENThe moneys of the Sinking Fund are not to be re-lent. They are to be applied as a Sinking Fund. Supposing £1,000,000 had been lent, in the first year there would be £40,000 payable on the £1,000,000 as an annuity, of which £10,000 would go to the Sinking Fund and might be employed in cancelling £10,000 of Guaranteed Stock. In consequence, at the beginning of the next year there would be only £990,000 of that Stock, and there would be £10,000 to lend again, bringing up the sum to the original £1,000,000. By such a process the amount of the Guaranteed Stock not covered would never exceed the £1,000,000. Or, again, the £10,000 might be invested in Consols, and the Consols themselves and the interest thereon would stand as an asset in favour of the Fund.
§ MR. KEAY (Elgin and Nairn)I wish to ask the right hon. Gentleman whether it is not the case that under the system which he has described it would be necessary to issue fresh Stock on the occasion of re-lending?
§ MR. GOSCHENYes; it would; £10,000 would be cancelled, and £10,000 would be freshly issued. Consequently, the total would stand as it was at the commencement. Under that process the total would never exceed £30,000,000, which would be covered by the security.
§ MR. SHAW LEFEVRE (Bradford, Central)Will the right hon. Gentleman lay on the Table a Return showing the 760 effect of the accumulated Sinking Fund under the Land Purchase Act?
§ MR. GOSCHENI will confer with my right hon. Friend the Chief Secretary, and see what we can do.