§ MR. YOUNG (Christchurch)
I beg to ask the Chancellor of the Exchequer whether cheques and orders intended for transmission between members of Friendly Societies and their bankers alone, and marked "not negotiable," are liable to Stamp Duty; and whether such liability attaches where the banker is also treasurer of the society; and, if they are so liable, whether, in the interests of the members of such societies, he will consider the possibility of exempting them from such duty?
§ MR. GOSCHEN
The words "not negotiable" borne by a crossed cheque have a technical and restricted meaning and operation under Part III. of the 1315 Bills of Exchange Act, 1882. Apart from that meaning and operation, however, it may be stated that, where an order drawn upon his banker by a member of a Friendly Society registered under the Friendly Societies Act, 1875, is so drawn as to be incapable of being carried otherwise than to the credit of the account of the society, that order is not a negotiable cheque, but is exempt from Stamp Duty under Section 15 of the Friendly Societies Act, 1875, as an order for money contributed to the funds of the society. It is immaterial whether the banker of the society is the treasurer of the society or not. I hope this gives the information my hon. Friend desires.