§ Mr. STEWART
asked the Chancellor of the Exchequer whether country banks have, under instructions from the Treasury, deducted the special penal tax of 2s. from dividend warrants relating to securities which have been deposited with the Treasury, and have not paid the extra ½ per cent. dividend promised on such deposited securities; and whether he can say how it is that in many cases no receipts have been given by the Treasury for securities which have already been deposited with them for several months?
§ Mr. McKENNA
The hon. Member no doubt refers to cases in which, owing to the fact that securities are delivered to208W the Treasury for deposit within a short period of the date of the next dividend payment, the dividend is paid to the depositor and not to the Treasury. In such circumstances, failing the production to the paying authority of a certificate of exemption, which is issuable, upon application, by the American Dollar Securities Committee, the special 2s. tax must be deducted by him from the dividend. The amount will, however, be refunded by the Committee to the depositor upon lodgment of the requisite evidence. Provisional receipts are in all cases issued at the time of delivery of securities to the Treasury for deposit. Some delay in the issue of the definitive certificates of deposit and in the payment of the additional ½ per cent. per annum is, I fear, at present unavoidable owing to the great pressure of work falling upon the Department concerned, but I hope this difficulty will be overcome shortly.