§ Mr. RHYS DAVIESasked the Minister of Health what, at 31st December, 1922, was the approximate sum held, permanently invested, by the Ministry of Health for account of Approved Societies, exclusive of sums invested for societies under Section 56 (3) of the National Insurance Act, 1911, as regards moneys representing income, and as regards moneys representing reserve values already redeemed; what was the cost price of the securities in which such moneys are invested; what was the market value of such securities on 31st December, 1922, taken at mid-Stock Exchange prices; what would be the annual income derived from such investments; what proportion thereof, in cash, would be credited to societies; what, from 15th July, 1912, to 31st December, 1922, was the approximate difference, in cash, between the total income received from the before-mentioned investments, as well as from sums temporarily invested for societies before being paid over to them, and the proportion thereof credited to societies; what actual loss has been sustained by the Ministry on the investment of the before-mentioned funds, giving details thereof; what, on the other hand, has been the amount received by way of cash appreciation on investments which have already matured and were held to maturity; what is the value, taken at mid price on 31st December, 1922, of any profits realised on the sale and reinvestment of securities held for account of societies and exchange from one security into another, respectively; what are the dates of maturity of present investments and the capital sums at each such dates which would then be realised by way of profit on cost price; what, approximately, would be the additional sum invested annually, or in 1923, for societies, and what proportion thereof would represent the annual sum applied to the redemption of reserve values; and what, so far as the information available to the Minister extends, are the respective figures as regards Wales and Scotland if the foregoing information be given as regards England only?
Mr. CHAMBERLAINThe following statement gives the information asked for by the hon. Member as regards England, Wales and Scotland together:
2311W
£ (1) Approximate sum held at 31st December, 1922, permanently invested, for account of Approved Societies exclusive of sums invested under Section 56 (3) of the National Insurance Act, 1911: (a) As regards moneys representing income £31,000,000 (b) As regards moneys representing values already redeemed 4,750,000 35,750,000 (2) Cost price of securities in which such moneys are invested 35,750,000* (3) Market value of such securities on 31st December, 1922, taken at mid Stock Exchange prices 35,700,000 (4) The annual income that would be derived from such investments 1,727,000 (5) The proportion thereof, in cash, that would be credited to Societies 1,430,000 (6) The approximate difference, in cash, between the total income received from the before-mentioned investments, as well as from sums temporarily invested for Societies before being paid over to them and the proportion thereof credited to Societies from 15th July, 1912, to 31st December, 1922 2,700,000† (7) The actual loss sustained on the investment of the before-mentioned funds: (i)Loss incidental to conversion (in 1915) of 2½per cent. Consols, 2½ per cent. Annuities, 2¾ per cent. Annuities and 3½ per cent. War Stock into 4½ per cent. War Stock £1,272,000 (ii) Sundry losses on sale 6,000 1,278,000 (8) The amount received by way of cash, appreciation on investments which have already matured and were held to maturity 1,000 (9) The value, taken at mid price on 31st December, 1922, of any profits realised on: (a) The sale and re-investment of securities held on account of Societies, and £235,000 (b) Exchange from one security into another, respectively Nil 235,000‡ (10) The dates of maturity of present investments, and the capital sums at such rate which would then be realised by way of profit on cost prices: (i)5¾ per cent. Exchequer Bonds, 1925 10,000ş (ii) 5 per cent. National War Bonds, 1st October, 1927 505,000ş (iii) 5 per cent. National War Bonds,1st April, 1928 213,000ş (iv) 5 per cent. National War Bonds, 1st September, 1928 316,000ş (v) 5 per cent. National War Bonds, 1st February, 1929 21,000ş (vi) 3¼ per cent. Exchequer Bonds, 1930 20,000ş (vii) 4½ per cent. Treasury Bonds, 1932 12,000ş (11) (a) The approximate additional sum to be invested in 1923 for Societies 1,750,000 (b) The proportion thereof that would represent the sum applied to the redemption of reserve values 400,000 * Cost price of securities exclusive of net realised loss referred to in succeeding note†. † Against this amount there falls to be set-off the difference between losses and profits realised on investments for Approved Societies as set out under items (7) (8) and (9) of the Statement. ‡ The sum of £235,000 represents profits realised on sale and may be regarded as substantially the same as the value of securities on 31st December, 1922, in respect thereof that cannot be separately identified. ş In regard to the bulk of these securities there are rights of conversion into 5 per cent. War Stock at the rate of £105 5s. 3d. for every £100 converted, and the National Debt Commissioners neglect no opportunity of effecting exchanges of such securities where deemed expedient. Securities of no fixed redemption are omitted.