§ SIR ROBERT ROPNER (Stockton)I beg to ask the Secretary to the Admiralty whether the interest allowed to the men employed in the Navy who deposit money in the Naval savings banks on board His Majesty's ships has recently been reduced from 3¾ to 2½ per cent.; and, if so, how this can be justified in face of the fact that interest generally allowed is higher now than it has been for some years.
§ MR. EDMUND ROBERTSONThe rate of interest on new accounts has been reduced from 3¾ per cent. simple to 2½ per cent. compound, which has always been the rate paid in the shore banks in the dockyards and marine divisions. The reasons are the depreciation in the value of the securities held against deposits, and the reduction of the rate of interest on Consols from 2¾ to 2½ per cent. It would have been impossible to continue the higher rate without coming to Parliament for a Grant in Aid.