§ 60. Mr. Keelingasked the Chancellor of the Exchequer whether he is aware that many people who already hold 500 Savings Certificates find it impossible to buy Defence Bonds; and whether he will consider the issue of further Savings Certificates at a lower rate of interest to such holders?
§ Sir J. SimonI take the suggestion in the first part of my hon. Friend's question to be that some people may not be able to provide £5 at one time to purchase a Defence Bond. In that case, their course should be to deposit whatever they can afford from time to time in the Post Office Savings Bank or a Trustee Savings Bank until they have sufficient to purchase a Bond. In view of that possibility I see no need to provide a further issue of National Savings Certificates as suggested in the second part of the question.
§ Mr. KeelingIs my right hon. Friend aware that to many people these Savings Certificates have attractions, which are lacking in the Defence Bonds, in that they are a kind of endowment policy?
§ Sir J. SimonLike Savings Certificates, the Defence Bonds can be held for a period of years. The Defence Bonds have this further quality that interest on them is payable half-yearly. I think that both instruments are attractive, and I am glad to say that they are both proving to be popular.
§ Mr. LipsonWill my right hon. Friend make it possible for those who already hold 500 Savings Certificates of the earlier series to buy a limited number of the new series?
§ Sir J. SimonNo, Sir. As I explained in my statement to the House, that could not be done, and that was one of the reasons for devising the Defence Bonds.