HC Deb 22 November 1912 vol 44 cc678-80W
Mr. RUPERT GWYNNE

asked the Under-Secretary of State for India if he will give the complete correspondence which has taken place this year between the India Office and Messrs. Samuel Montagu and Company in regard to the purchases of silver, instead of extracts from certain letters, as already furnished?

Mr. H. BAKER

The correspondence circulated in accordance with the hon. Member's previous question consisted of the full text of the letters instructing Messrs. Samuel Montagu and Company to purchase, and of such letters from the firm as were mentioned therein. In no case was an extract given. I am now circulating with the Votes copies of such other letters as were received relating to the various orders and to the terms. There were, in addition, some letters from the firm forwarding contract notes for the instalments of the purchases and correspondence on such matters as dates of shipment, destination, insurance, etc. These will be circulated, if the hon. Member so desires. Many points of detail were settled and reported orally.

"From Messrs Samuel Montagu and Company, to India Office, dated 5th March, 1912.

"We have the pleasure to acknowledge your letter of yesterday's date with an order to purchase for the Secretary of State for India silver to the value of £500,000, we to use our discretion as to the times and in what amounts we buy. All purchases to be made, until further notice, for forward delivery, but not beyond 31st July. We take full note of all instructions concerning payment and eventual shipping. We succeeded in buying to-day about £50,000 at a fall of 3/16 of a penny in the forward price, and have left the market weak. It is quite possible that we may judge it advisable to abstain from buying for you altogether to-morrow, as there is nothing so likely to provoke comment as appearing to have no silver for sale for any length of lime. That is why we have secured rather more than an average amount to-day. We are sending you a contract, and shall, later on, send you an authorisation to pay all sums due to us on account of shipments or deliveries to the Union Bank. You will notice that we have secured a portion of to-day's purchase for delivery, 30th June."

"Messrs. Samuel Montagu and Company, to India Office, dated 22nd March, 1012.

"We have the pleasure to inform you that we have just completed your order for £500,000 silver by the purchase of £70,000 for delivery in about two months at 26 15/16"

"Messrs. Samuel Montagu and Company, to India Office, dated 26th March, 1912.

"We beg to acknowledge with thanks your order to purchase for the Secretary of State for India a further sum of £250,000 fine bar silver on the same conditions as the previous order of the 4th March. We have today purchased £15,000 two months forward at 267/8 as per contract enclosed."

"Messrs. Samuel Montagu and Company, to India Office, dated 19th April, 1912.

"We beg to acknowledge receipt of your letter of yesterday's date. We take note of its contents and have, to-day, postponed £101,000, i.e., contracts 16, 19, 22, 33 from 1st May to 1st July at ⅛ of a penny to you charging you the usual ⅛ per cent, brokerage. We shall continue to do these postponements at market rates as the due dates come nearer. We have bought for you to-day £27,000 for which we enclose contract."

"Messrs. Samuel Montagu and Company, to India Office, dated 21st May, 1912.

"We have much pleasure in acknowledging your order to buy for the Secretary of State for India £250,000 bar silver. According to your instructions we have consulted Sir Felix Schuster as to the deliveries and price, with the result that we have purchased, according to contracts enclosed, £30,000 for delivery 1st June. We have fixed the price at 1/32 of a penny above cash price in order to compensate ourselves for the loss of interest. In order not to send you a contract introducing so small a fraction, which would be contrary to custom, we have fixed half the amount at 2¼ and the other half at 285/16, which amounts to the same thing. This also has the approval of Sir Felix."

"Messrs. Samuel Montagu and Company, to India Office, dated 29th June, 1912.

"We have much pleasure in acknowledging the receipt of your telephonic message, to be followed by a letter which we expect to receive to-morrow, asking us to purchase £250,000 silver for account of the Secretary of State for India. We have bought to-day, about £70,000 at 28⅜, and have given notice to the Accountant-General that we shall require the money to-morrow against bank receipts that we are sending him by this evening's mail"

"Messrs. Samuel Montagu and Company, to India Office, dated 27th June, 1912.

"We beg to acknowledge receipt of your letter of to-day's date asking us to buy for account of the Secretary of State for India a further amount of £250,000 silver on the usual conditions. We have today purchased £75,000 as per enclosed contract."

Messrs. Samuel Montagu and Company, to India Office, dated 5th July, 1912.

"We have to-day bought for you £12,000 silver, thus completing your last order of £250,000. We enclose contract. Having now purchased for you the whole £2,000,000 that was suggested when first you gave us an order, we take the opportunity of saying how much we appreciate the confidence that you have placed in us in giving ns so much freedom in carrying out the business. We hope that we have done nothing to show that this confidence was misplaced, and that you are satisfied that we were justified in making those assurances to you that we did at the commencement of the business."

"India Office to Messrs. Samuel Montagu and Company dated 11th July, 1912.

"I am directed to acknowledge the receipt of your letter of the 5th instant, reporting the completion of the purchase of silver to the value of £7,00,000 on behalf of the Secretary of State for India in Council. In reply I am to convey to you his Lordship's cordial thanks for the satisfactory manner in which you have carried out the transaction and the secrecy which has been observed."

"Messrs. Samuel Montagu and Company, to India Office, dated 31st July, 1912.

"We were informed by Sir Felix Schuster that we are about to receive an order for £500,000 more silver, and were desired by him to commence operations today. We accordingly purchased to-day £30,000 for delivery in two months' time at 27⅞, and £30,000 for delivery to-morrow at 27¾, and enclose contracts therefor. We are in receipt of your letter of to-day confirming the order referred to above."

Messrs. Samuel Montagu and Company, to India Office, dated 29th August, 1912.

"We acknowledge, with many thanks, your letter of yesterday's date with a fresh order for £500,000 silver. You can rely on our doing our very best to purchase this amount to your best advantage."