§ "Option notes" will be charged at similar rates, calculated upon the value of the securities to which the option relates. When a substantive contract follows upon the option and involves the payment of stamp duty upon the contract note, there will be a return of the duty already paid in respect of the option contract. Brokers who are not members of the Stock Exchange, whether acting as agents or principals, will be required to issue similar notes to their clients and such notes will 520 be chargeable with the same duties. The preferential treatment now enjoyed by the so-called "bucket shops"—institutions whose principal object is the encouragement of gambling—in the matter of stamp duties will thus be removed. These additional stamp duties may be expected to yield about £1,450,000 in a full year—of which conveyances, deeds of gift, settlements and leases will account for £850,000, bonds to bearer and other marketable securities for £350,000, and contract notes for £250,000. They will not, however, come into force until the Finance Bill has received the Royal assent. The greater part of the first half-year's revenue will thus be lost, while, in the case of most of the duties, a considerable amount of "fore-stalment" has to be reckoned with, since transactions will no doubt be expedited wherever possible to secure the advantage of the lower rate of duty. I cannot, therefore, safely calculate upon receiving more than £650,000 in 1909–10.
§ [Sitting suspended for half an hour.]