§ 85 and 86. Sir JOHN JARDINEasked the Chancellor of the Exchequer (1) whether a joint stock bank, having its head office in the United Kingdom and branches in India 661 or the British Dominions or Crown Colonies, or in Allied or neutral countries, can pass as a good delivery securities which have not been in physical possession in the United Kingdom since the 30th September, 1914, but have since that date been held by such a bank at such branch for safe custody on behalf of a customer, or under lien against advances made in the United Kingdom at the head office or at such branch bank; under what conditions or regulations applicable to these circumstances the sale of such securities is permitted; and (2) in regard to securities which have not been in physical possession in the United Kingdom since the 30th September, 1914, but in that of a branch in India, or a Dominion or Crown Colony, or an Allied or neutral country, of a bank with its head office in the United Kingdom, whether such securities may be forwarded to the United Kingdom for sale; whether, if sold and the purchase money invested in Exchequer Bonds or other Government security, it is competent for the merchant so reinvesting to sell them again when he requires money for business purposes; and whether the bank can retain such bonds or Government securities as cover?
§ Mr. McKENNADealings in securities which have not been in continuous physical possession in the United Kingdom since 30th September, 1914, are not permissible under the Temporary Regulations for the Reopening of the Stock Exchange, and securities held by banks, whose head offices are in the United Kingdom, at branches outside the United Kingdom, have clearly not been in continuous physical possession in the United Kingdom. Such securities are therefore not negotiable in this country unless in circumstances bringing the transaction within the scope of one or other of the special relaxations approved by the Treasury and announced from time to time by the Stock Exchange. One such relaxation permits the sale of securities which do not fulfil the requirements as to physical possession if the proceeds of sale are invested in British Government securities, provided that adequate guarantees are given that the latter securities will not be sold nor used as cover for loans of any kind during the War.