CLAUSE 1.—(Power to Call in Notes for the Purpose of Exchange for Other Notes). (Hansard, 27 August 1914)

§ Mr. DILLON
I wish to draw the attention of the Chancellor of the Exchequer again to Sub-section (6) of Clause 1 of the Bill. That Sub-section has this provision which differentiated it from every other Sub-section, that it shall have effect only until His Majesty by Proclamation revokes the same.

§ The CHANCELLOR of the EXCHEQUER (Mr. Lloyd George)
That is not in the Bill.

§ Mr. DILLON
I am speaking of the original Act.

§ The CHAIRMAN
That hardly arises on the question that Clause 1 of this Bill stand part.

§ Mr. DILLON
Perhaps I may explain that I was going on to refer to Sub-section 1 of the original Act. I was in error in not stating that at once. But perhaps I may be allowed to ask the Chancellor of the Exchequer whether he can give us some undertaking that he will issue a Proclamation revoking Sub-section (6) of Clause 1 of the original Act, because otherwise I should be disposed to move an Amendment later on revoking that Sub-section. I ask the Chancellor of the Exchequer will he mention a date on which he would advise His Majesty to issue that Proclamation, because it is perfectly plain from the language of Sub-section (6) that the provision making postal orders currency and legal tender was only intended to meet an emergency and would be revoked. My contention in connection with the wording of that Sub-section is that every post office is forcing into currency these postal orders and refusing to give silver change, and that is a source of a very great deal of annoyance. Old age pensions are being paid throughout the country in postal orders instead of in silver. I put a question to the Chancellor of the Exchequer yesterday, and he said that he knew no reason why silver 197 should be scarce. If that is so, why should Government Departments deny silver? All I ask from the Chancellor is that if he cannot revoke this Sub-section he will give an undertaking that the Postmaster-General should not refuse to give silver change, and should not continue to pay old age pensions in postal orders instead of silver, and that the Post Office should give change in the ordinary currency, and not force these postal orders into circulation. I think that is a reasonable request, and I hope the Chancellor of the Exchequer will give us that undertaking.

§ Sir A. MARKHAM
May I join in the appeal made by the hon. Gentleman opposite to the Chancellor of the Exchequer, and may I ask the right hon. Gentleman will he tell us what profit there is on a sovereign's worth of silver? The payment of wages in this postal currency is a very great inconvenience. If the Chancellor of the Exchequer wants to make some money, why does he not say so?

§ Mr. LLOYD GEORGE
I cannot at the present moment tell what profit there is, and I hope my hon. Friend will not press me to reveal that part of the business. In reply to my hon. Friend the Member for East Mayo, we have already instructed the Post Office that they are not to give any more of those orders, and the moment we are satisfied that we have got them back we shall issue a Proclamation putting an end to their position now as legal tender. We shall stop, first of all, further issues, and in a very short time we shall be in a position to recall the power they now have of being legal tender.

§ Mr. DILLON
That is an entirely satisfactory answer, and I am sure that it will give great satisfaction.

§ Mr. LLOYD GEORGE
In reply to a question put to me, I may say that we are coining silver as rapidly as we possibly can. I understand that the scarcity is partly due to the mobilising, and that has had a good deal to do with it. In order to deal with the scarcity of silver we are coining as fast as we can.