§ MR. DUNN (Cornwall, Camborne)I beg to ask Mr. Chancellor of the Exchequer whether he is aware that in the issue of the Guaranteed £2 15s. Irish Loan Stock no application for less than £2,000 stock has received allotment, thus absolutely ignoring the small investor; whether this practice is to be pursued in the future; and, if so, whether an official intimation to the effect that no small investors need apply will be made to the public.
§ MR. LLOYD-GEORGEThe method of allotment was settled after the applications had been received. In view of the very large number of applications for small amounts, it was found to be impossible to apply any method of pro rata allotment to all the applicants. It is not the practice to make an allotment of a less amount than £100 stock, and, in order to observe this rule and at the same time to ensure as nearly as possible a pro rata allotment, it was found necessary to exclude all applications under £2,000. Such a course is only resorted to when the number of applications for small amounts renders it necessary, so that it would be impossible as well as inexpedient to give notice beforehand of the maner in which applications can be dealt with.
§ MR. SWIFT MACNEILL (Donegal, S.)Therefore, the whole benefit of this loan falls into the maws of the Stock Exchange sharks.
§ SIR F. BANBURY (City of London)Is the right hon. Gentleman aware that advantage has been taken of the Supposed preference given to small investors to enable the sharks referred to by the hon. Member for South Donegal to obtain large allotments by filling up an enormous number of small applications?
§ MR. LLOYD-GEORGEI quite agree. The question is not so simple 1108 as it appears. In the past advantage has undoubtedly been taken of the preference given to small investors.
§ MR. FLYNNHas not a distinguished ex-Chancellor of the Exchequer declared that this stock should have been issued at £1 higher in favour of Ireland? Can the right hon. Gentleman say why that was not done?
§ MR. LLOYD-GEORGEI have explained the circumstances over and over again.
§ MR. RIDSDALE (Brighton)Will the right hon. Gentleman consider the advisability of allowing preferential allotment to small applicants who pay in full on application?
§ MR. LLOYD-GEORGEI am not sure that would be a sufficient guarantee, and I am perfectly certain it would be a very great mistake for me to say so beforehand.
§ MR. WATTI beg to ask Mr. Chancellor of the Exchequer if he will state the number of applicants for £250 stock, or less, of the recent issue of Irish Land Stock; how many of these were granted allotments and how many were refused; and whether in future issues he will provide some means of giving allotments to applicants for small sums on some condition that they will hold the stock for a certain time whereby their bona fides as investors will be proved.
§ MR. LLOYD-GEORGEApplications could only be made in multiples of £100. The applications for £100 and £200 numbered 14,412. It was impossible, in view of the number of the applications, to make an allotment in any of these cases. The object of my hon. friend's suggestion is one that has my full sympathy, and I shall be prepared to consider any method that can be suggested for attaining it, but the difficulties appear to be considerable.