§ Mr. LEACH
asked the right hon. Gentleman if he has considered whether a wider use could be made of post office and trustees savings bank funds for municipal administration; and whether, in the interests of ratepayers as well as of the depositors in savings banks, he will consider the advisability of widening the area of investment of such funds, so as to enable local authorities to obtain advances of such funds on the security of the rates or other property or funds which they are authorised to mortgage?
§ Mr. LLOYD-GEORGE
The object which my hon. Friend has in view is already to a large extent secured through the machinery of the Local Loans Fund, the securities issued on account of that fund being by law authorised investments for savings banks funds. There would, I think, be very strong objections to any arrangement under which municipal authorities would be allowed to borrow directly from these funds. I may also, perhaps, refer my hon. Friend to the Report of the Select Committee on Savings Banks of 1902, which was not in favour of an extension of the area of investment for savings banks moneys.