HC Deb 26 June 1916 vol 83 cc692-4

(1) Sub-section (1) of Section two of the Government War Obligations Act, 1915, shall apply, and shall be deemed always to have applied, to the sale of securities to the Treasury and to securities sold to the Treasury in the same manner as it applies to the giving of securities to the Treasury in exchange for Government securities and to securities so given in exchange.

(2) The authority and indemnity given to persons holding securities under Sub-section (1) of Section two of the Government War Obligations Act, 1915, shall apply, and shall be deemed always to have applied, to directors of a company, and to any person holding securities on behalf of any corporation or body of persons depositing securities or giving them in exchange, or selling securities, in pursuance of that Sub-section as amended by this Act, notwithstanding any want of authority from the company, corporation, or body of persons.

(3) It is hereby declared that Sub-section (4) of Section two of the Government War Obligations Act, 1915, (which removes certain disqualifications attaching to Members of Parliament in connection with the deposit, exchange, and sale of securities under a Treasury securities deposit scheme), applies to any transactions in connection with any such deposit, exchange, or sale as it applies to the deposit, exchange, or sale.—[Mr.McKenna.]

Clause brought up, and read the first time.

Motion made, and Question proposed, "That the Clause be read a second time."

Mr. MONTAGU

The first part of this Clause makes it quite clear that the indemnity given by previous legislation to trustees who deposit securities with the Treasury under the American securities scheme shall also apply when they sell their securities to the State. The second Sub-section gives authority and indemnity to directors and other people holding securities on behalf of corporations. It was thought that this would not be necessary, because the company or corporation could hold a meeting and decide to hand their securities over to the Government. But that causes great waste of time and delay, and this Clause gives power to directors to act on behalf of the company. The third Sub-section is to make quite clear the position of Members of Parliament. Under a previous Act an indemnity was given to Members of Parliament if they sold their American securities to the Government, but there are certain Members of this House who are brokers, and have persuaded their clients to sell securities to the Government. I think the indemnity was already quite clear, but some anxiety has been expressed, and this is a declaratory Clause to make sure that these Gentlemen acting in the capacity of brokers have not thereby vacated their seats.

Sir G. YOUNGER

Is there any indemnity in the case of Treasury Bills?

Mr. MONTAGU

Yes.

Clause added to the Bill.

Committee report Progress; to sit again to-morrow (Tuesday).

The remaining Orders were read, and postponed.