§ Mr. MacNEILLasked the Chancellor of the Exchequer whether in 1880 it was ascertained that there was a deficiency in the assets of the Trustee Savings Banks, such deficiency being estimated by Mr. Gladstone as £3,565,000; whether, for the purpose of making good that deficiency, there was set up an annuity of £86,672; by what method of valuation it was ascertained that there existed a deficiency which it was deemed necessary to make good by a charge upon the taxpayers; if he will state whether the application of the same method to the assets of the Post Office Savings Bank and the Trustee Savings Banks would reveal deficiencies; and, if so, what would be the amount of these deficiencies in the assets of the Post Office Savings Bank and the Trustee Savings Banks respectively?
§ Mr. LLOYD GEORGEThe capital deficiency on the Trustee Savings Banks Fund at 20th November, 1880, was estimated at £3,565,000 as stated, and an annuity of £83,672 was set up to replace the same. In arriving at the deficiency the securities held were valued on a 3¼ per cent. basis, in the manner laid down in Section 1 of the Savings Banks Act, 1880, 43–44 Vic., cap. 36. This method of valuation was changed to a 2¾ per cent. basis in 1891 and finally abandoned altogether in 1904 as regards trustee banks, and it has never been applied as regards the Post Office Savings Bank. I do not think its revival would serve any useful purpose.