§ Mr. SWIFT MACNEILLI beg to ask Mr. Chancellor of the Exchequer whether he is aware that, in the years 1894 to 1899, both inclusive, the Commissioners for the Reduction of the National Debt purchased on account of the Post Office Savings Bank £44,996,000 Consols at an average price of £107 14s. 6d. per cent.; that on the 31st December, 1906, the Commissioners held, on account of the Post Office Savings Bank, £59,977,000 Consols at a cost price on balance of £103 0s. 3d. per cent.; that the market price of Consols being at that date about 86 per cent., there was then a depreciation in the value of the Consols so held of £10,000,000; whether his attention has been directed to the definition of a deficiency, in the cognate case of the trustee savings banks, contained in 26 and 27 Vic., c. 25, ss. 6 and 7, and 43 and 44 Vic., c. 36, s. 1; whether there was, in the funds held on account of the Post Office Savings Bank, on the 31st December, 1906, a deficiency within the meaning of 24 and 25 Vic, c. 14, s. 6; and does he purpose to take measures to issue the amount of the deficiency in the manner directed by the Act.
§ MR. ASQUITHI understand that the figures quoted by my hon. friend are correct. I must point out, however, that the Consols and other securities held for the Savings Banks Fund are held practically as permanent investments, so that valuations on the basis of the current market price of similar securities are misleading. It was on this ground that the Select Committee of 1902 recommended, and the Savings Banks Act, 1904, directed, the discontinuance of the, 1440 practice of making and publishing such valuations. Section 6 of the Post Office Savings Banks Act, 1861, to which my hon. friend refers, provides that, if at any time the Post Office Savings Banks Fund is insufficient to meet the lawful claims of all depositors, an issue may be made from the Consolidated Fund of the amount of such deficiency. This is a very important provision, because it ensures to every depositor the satisfaction of his claim by the Consolidated Fund if the Special Fund in the hands of the National Debt Commissioners should at any time prove insufficient. But it is only in the event of the Savings Banks Fund being unable to meet actual claims that the necessity for a Consolidated Fund issue can occur, and I need hardly say that such a contingency has never in fact arisen.