§ Sir F. DIXON-HARTLANDI beg to ask Mr. Chancellor of the Exchequer if he will state whether the assets of the Post Office Savings Bank are equal in market value to the liabilities, and if there be a deficiency will he state the approximate amount; whether such deficiency is included in the figures of the National Debt; and, if not, will he explain how far the correctness of the figures showing the total of the National Debt is affected thereby.
§ MR. ASQUITHUntil two years ago it was the practice to make an annual valuation of the assets of the Savings Bank's Funds on the basis of the current market price of securities. When the assets, according to this valuation, were less than the liabilities, the amount of the deficiency was included among the contingent or indirect liabilities of the State, shown in the annual Return of the National Debt. The Savings Bank Act, 1904 (4 Edw. VII., Cap. 8, Section 9) 399 directed the discontinuance of that method of valuation, and accordingly any deficiency which it might indicate is no longer shown in the published statement of the National Debt. I may remind the hon. Member that this change of law was made on the recommendation of the Select Committee on the Savings Bank Funds, of which he was a member. The Committee were of opinion that, in the circumstances of the Savings Bank Funds, a valuation of assets, according to market price, is incorrect and misleading. It would defeat the purpose of the change if I were now to compute and publish a valuation on the discarded basis.