§ DR. MACNAMARA (Camberwell, N.)I beg to ask Mr. Chancellor of the Exchequer whether his attention has been directed to the statement of Sir E. W. Hamilton, in his evidence given before the Select Committee on Savings Banks Funds, 1902 (Question 1152), that if Consols went down to 90 there would be a serious loss on the capital account of the savings banks; and whether, as Consols have fallen to 90 and lower, he will say if this loss on the capital account has been incurred; and, if so, is it his intention to propose measures for making the same good.
§ THE CHANCELLOR OF THE EXCHEQUER (Mr. AUSTEN CHAMBERLAIN, Worcestershire, E.)Yes, Sir; I have seen Sir E. Hamilton's evidence before the Committee in which he pointed out that, if Consols went down to 90 and it were necessary to realise them at that price, a great loss of capital would be incurred—not, however, by the savings bank depositors, but by the Exchequer. But no necessity has arisen, or, as far as I can see, is likely to arise, for selling at current prices the Consols which are held as permanent investments. No such loss has therefore been realised, and no special measures are necessary in respect of the savings banks.