§ I propose to prolong the Savings Bank annuity of £2,200,000 from March 1902 till 1911. That will reduce the annual charge for that annuity to £591,000. With the saving I propose to cancel the book debt of £13,000,000 to the Savings Banks which was established by my right honourable Friend the First Lord of the Admiralty in 1892, and also to cancel £15,000,000 of Consols now held for the Savings Banks by the National Debt Commissioners; and in place of the book debt and Consols so cancelled to set up two terminable annuities respectively of the amount of £746,000 and £870,000, expiring in the year 1923, when Consols will be redeemable at par. I have chosen that year because the nearer that time approaches the more Consols must approximate to par; and the stock to be replaced through the terminable annuities will, therefore, be obtained most cheaply at the time when the greater part of it will be required. I think, Sir, this proposal needs no argument to commend itself to the Committee. It is impossible that Parliament can allow such enormous windfalls as those which I have named to fall into the new Sinking Fund within two years. It is right that we should take measures now to strengthen and maintain the Sinking Fund by such a 1011 course as I have suggested. It is perfectly in accordance with precedent, and I do not believe that any objection can be raised to it.