§ Mr. L. SCOTTasked the Chancellor of the Exchequer (1) whether holders of 4 per cent. and 5 per cent. War Stocks obtain any and what rights under the Clause in the prospectus referring to the Depreciation Fund or whether the liability of the Exchequer to the holders of the stocks ceases after putting money to the Depreciation Fund;
(2) whether it is purely optional on the part of the Treasury whether any purchases of either stocks are made, there being no obligation on their part to purchase unless they think fit: if 443W so, whether he would be willing, as long as there is a depreciation in both stocks, to consider the application of the monthly quota in purchases of the two stocks in proportion to the amount contributed on behalf of each stock, leaving only the accumulated fund to be subject to the discretion of the Treasury;
(3) whether, in view of the large number of investors interested in war stocks, a Return of the application of the Depreciation Fund could be issued similar to that issued in regard to the Sinking Fund before the War; and whether a similar Return could be issued for the Funding Loan Sinking Fund?
Mr. CHAMBERLAINThe undertaking of the State under the prospectus of the 4 per cent. and 5 per cent. War Loan is, as stated therein, to provide certain sums for the Depreciation Fund. That fund is employed by the National Debt Commissioners in accordance with the terms of the prospectus in such a way as will have the best effect in supporting the price, and I think it would be most undesirable for me to interfere with the exercise by the Commissioners of their discretion in the matter of the purchases best calculated to achieve this purpose. Particulars of the application of the fund are given in the Annual Finance Accounts, and I do not think there would be sufficient justification for incurring the expense of a special Return.