§ MR.JOHN REDMOND (Waterford)I beg to ask the Secretary to the Treasury if under the Treasury rules issued in pursuance of Section 36, Subsection 5, of the Irish Land Act, 1903, a
‡See (4) Debates, clxxii., 1570 –8.543 person to whom land stock is issued in the month of March or April in any year is paid six months' interest on such stock on the 21st of June next following, although this stock has only been in existence for a portion of six months; if he is aware that Section 28, Sub-Section I enacts that dividends on Irish land stock, are to be paid at the rate of 2 ¾ per cent. per annum, and that payments such as described above are largely in excess of the rate of 2 ¾ per cent. per annum; can he state by what authority the Treasury are entitled to pay a greater rate than that authorised by the Irish Land Act, 1903, to the detriment of Irish funds, which were declared and intended to be for other purposes; and whether he intends to bring the Treasury Rules into conformity with the Act of Parliament, and take steps without legislation to see that no unearned dividend is paid on future issue of land stock, by notice at the time of issue that dividends will only be paid half-yearly at the rate of 2¾ per cent. per annum, as provided by Section 28, Sub-section 1.
§ MR. RUNCIMANThe Treasury Rule under Section 36 (5) prescribes the dates on which certain payments shall be made by the Irish Land Commission to the National Debt Commissioners. It does not affect the amount payable as dividend to a holder of guaranteed 2¾ per. Cent. stock. The dividends on that stock are not payable on 21st June, but on 1st January and 1st July in each year. I am aware that Section 28 (1) of the Act provides that the stock shall yield dividends at the rate of 2¾ per cent. per annum on the nominal amount of the capital. Where a fresh issue of stock is made in the month of March or April, the usual practice would be to issue the stock with a title to a half-year's dividend on the following 1st July. The stock is in effect created as from the preceding 2nd January, and bears interest at 2¾ per cent. from that date. There is nothing in the Act to prescribe that the stock shall bear interest only from the date on which the subscribers' instalments are paid up. There is, however, a provision in Subsection (2) of Section 28 requiring that equal half-yearly dividends shall be paid on the due dates, which might be difficult to reconcile with the procedure proposed by the hon. and learned Member. Be 544 that as it may, however, the practice of issuing stock to carry a full dividend on the first dividend day is the regular practice in the issue of British Government stocks; it is not a special procedure devised for the guaranteed 2¾ per cent. stock; and it is adopted on the highest expert advice as being the course best calculated to secure the most favourable issue of the stock.
§ MR. MOONEY (Newry)Will the right hon. Gentleman issue a statement showing how the loss of £102,000 is made up?
§ MR RUNCIMANYes; if the hon. Member will put down an unstarred Question I will circulate the Answer.