HC Deb 14 April 1902 vol 106 cc176-8

Now I come to another form of direct taxation, as to which I shall ask leave to make a slight addition. I refer to the stamp duties. As every one knows who has studied our finances the stamp duties are remarkable in their vicissitudes, but there is one kind of which it may be said it regularly increases, and that is a small and uniform stamp duty, which gives no trouble, and does not tempt evasion. Amongst the small stamp duties is a stamp duty of 1d. on bills at sight, and amongst these are reckoned dividend warrants and the cheques that we draw upon our bankers. Sir, I am going to ask that this 1d. tax may be 2d. I think hon. Members will be surprised when they hear how much it is anticipated that this will yield. The Inland Revenue authorities know pretty well how much is derived from this tax, because, of course, it is the custom for bankers to have their cheque-books stamped by the Inland Revenue authorities before circulating them to their customers; and, assuming that time is given, as it ought to be given, before the tax comes into force, to make the necessary arrangements, say up to July 1st, the yield for the current year of an ad ditional 1d. on bills at sight may be no less than half a million. That is the yield for the year 1902–03. The 1d. stamp duty on cheques yielded in 1901–02 the sum of £800,000. The fact is, cheques have so enormously increased that they have become the paper currency of the country; they are used for any sum, however small. It is possible that some economically minded persons may not give quite as many cheques at 2d. as they have given in the past at 1d. If so, no one ought to be more delighted than the bankers, whose accounts will be greatly simplified. But I do not believe myself that that will be largely the result, for the simple reason, that we have all got out of the practice of carrying much cash about us; and if it costs 2d. to send a money order for£1, and as much to send postal orders for 21s. 6d., I do not see why you should be able to transmit money through the post by cheque cheaper than you can by the recognised postal tariff. I hope the Committee will consider, bearing in mind the enormous convenience of cheques, the delights of a banking account, the charm of overdrawing that account whenever your banker will allow you that 2d. on a cheque is not too much to pay to the State for these privileges.