HC Deb 19 April 1920 vol 128 cc75-7

Before passing from the year which has just closed, there is one other subject which I cannot leave un-mentioned—I refer to the work of the National Savings Committee. The House is aware that the Government have decided that there shall be no more borrowing to balance revenue and expenditure. Henceforth if we borrow it is only to fund the floating debt or to replace maturing debt. Of all forms of borrowing the sale of Savings Certificates is one to which I have recourse in so far as it is within my power with the greatest readiness. Before the War it was our misfortune and to some extent our reproach that the premier national security of the world, the stocks and obligations of the British Government, were held in comparatively few hands, and that so few of our citizens had any interest in them. That reproach has been removed by the success of the Savings Movement. Apart altogether from the needs of the State, the Savings Movement, fostered by the National Savings Committee, has had such remarkable and such admirable results that it would be a national misfortune if it were now allowed to come to an end. A few weeks ago the number of certificates sold reached 400,000,000. Nearly 141,000,000 have been sold since the date of the Armistice. There must of course on the other side be withdrawals. We have always expected them and must expect that they will increase as the years go on. But it remains the case that against the 400,000,000 certificates sold, representing an original capital of £310,000,000, the withdrawals barely reach £38,000,000, not a little of which has gone into other Government securities. For this great movement with these wonderful results we are indebted to a devoted band of voluntary workers up and down the country who have acted under the chairmanship of Sir Robert Kindersley. He has found it necessary to resign the chairmanship within the last few weeks, although I am glad to say he has consented to remain with the movement as President and to lend it the assistance of his authority and his personal supervision. But I cannot allow the resignation of the Chairmanship by him to pass without paying on the floor of this House my tribute of gratitude, and may I say a tribute of gratitude from the Committee, to him for his devoted labour and for the unexampled success which has attended it. I am glad to be able to announce to the House that I have succeeded in obtaining the services of Lord Islington as his successor, of whose ability and energy in public work I was myself able to form an opinion when he and I served together at the India Office. The Savings Certificates as they will henceforth be known, will therefore continue. The need of capital for public purposes, national and local, is still extreme. There should be no narrow or jealous rivalry between the State and local authorities in this matter, and I hope the National Savings Association will serve both interests and offer to those whom it can influence the opportunities of thrift which are given by the issue of the securities of local authorities and by the issue of Saving Certificates by the State. I do not wish to treat the assistance which the Treasury receives from the sale of Savings Certificates as a means of dealing with the Floating Debt otherwise than as a happy bye-product of the movement in favour of thrift and wise spending which is being initiated by the Savings Committee. It is, however, pertinent to observe that the sale of Savings Certificates brought in over £48,000,000 last year, and accounted, therefore, for nearly half the net reduction in the Floating Debt.

It may be too sanguine to hope for as large a net receipt during the current year, but I would venture to suggest to the National Savings movement that they have this year a great opportunity. Our share of the Anglo-French Loan maturing in October is, roughly, £50,000,000. Let us buy it back by the sale of Savings Certificates. Then, instead of owing that sum to creditors in America, we in this country shall be the holders of our own securities, and a burdensome external liability will have become a valuable national asset.