§ 89. Mr. CURRIEasked the Chancellor of the Exchequer whether, in view of the better facilities announced by certain of the London banks within the last few days for the transaction of business arising out of issues of War Loan, etc., he will consider whether arrangements can now be made for numerous important local bank agencies in Scotland to act practically as Government agencies for such business; whether his attention has been called to the discontent which exists in Scotland owing to the loss of interest imposed upon Scottish applicants for Government Bonds in lieu of the ordinary commission on the transfer of money from Scotland to London; whether the charge of this commission was abolished as the result of representations made in this House; and whether the new exaction is heavier than or at least as heavy as the old one?
§ Mr. McKENNAI would refer my hon. Friend to the answers previously given to him and other Members on this general subject, and in particular to answers to questions put by him and by the hon. Member for the College Division of Glasgow on the 26th January, 1916. Scottish investors in Exchequer Bonds can forward their applications direct to the Bank of England, together with a draft or cheque for the purchase price, in which case the bonds do not begin to carry interest until the date on which the draft is realised and the money actually received in London; or, alternatively, they can without charge obtain through their bankers a draft payable in London, thus enabling the bonds to be issued at once. The Bank of England has endeavoured, in making this latter arrangement with the Scottish banks, to provide special facilities for Scottish investors without cost to themselves, and it would not be reasonable that the expense and loss of interest involved in realising Scottish drafts should be borne by the Exchequer if these facilities are not availed of. It depends on the circumstances of each case whether it is cheaper for the investor to pay a bank charge for commission on the cashing of a Scottish cheque or to lose a few days' interest while the cheque is being realised. The arrangements made for avoiding the charge for commission were not intended and cannot be allowed to override the universal rule that bonds are not issued until the purchase money is actually received by the Bank of England.
§ Mr. WATTCannot the right hon. Gentleman see his way to utilise the Bank of Scotland and the Bank in Ireland as his agents for those countries respectively?
§ Mr. McKENNAThere are objections to such a course.