§ Mr. RHYS DAVIESasked the Minister of Health if he will state what was the total loss realised by the National Health Insurance funds under the control of his Department (or of the Joint Committee) in respect of the conversion or sale of Consols and/or other securities purchased on behalf of such funds previously to 31st. December, 1921; what were the securities in which such funds stood invested on 31st December, 1921; what was the extent of the depreciation in such securities at the same date on the basis of mid-market prices; what, approximately, has been the amount of interest earned by the investment through the National Health Insurance Fund of moneys standing to the credit of approved societies as at 31st December, 1921; what, also approximately, is the proportion thereof which has been credited to societies up to the same date; and whether, in view of the substantial rise in the market value of British Government securities, he can now see his way to credit societies with a rate of interest more closely approximating to that earned by the securities held than the 4 per cent, at present allowed to them?
§ Sir A. MONDThe total loss realised by National Health Insurance Funds in respect of the conversion or sale of Consols and other securities purchased on behalf of such funds previously to 31st December, 1921, was approximately £1,800,000. A list of the securities in which such funds stood invested on the294W 31st December, 1921, is given below. The extent of the depreciation of such securities at 31st December, 1921, on the basis of mid-market prices, was approximately £2,100,000. The amount of interest earned by the investment through the National Health Insurance Fund of moneys standing to the credit of approved societies, as at 31st December, 1921, was approximately £10,000,000 and the proportion thereof credited to societies up to the same date £7,500,000. With regard to the last part of the question, the hon. Member will appreciate that while the improvement in market prices obtaining for the moment goes far to meet the losses and depreciation above referred to, it renders it the more difficult to maintain the existing average yield, since new moneys accruing to the funds have to be invested on less favourable terms. In view of the present trend of money rates I am of opinion that it would be unwise to disturb the present rate of interest prescribed for moneys in the Investment Account, which I would remind the hon. Member is substantially greater than could have been anticipated under pre-War conditions. I am anxious as far as possible to avoid frequent variations in the prescribed rate and should prefer to reserve any small excess earnings there may be in order to maintain the existing rate as long as possible.
Statement of Securities held for National Health Insurance Funds on 31st December, 1921. Description of Security. Amount held. £ Local Loans 3 per cent. Stock 1,741,573 Guaranteed 2¾ per cent. Stock 2,706,833 Guaranteed 3 per cent. Stock 4,371,070 5 per cent. War Stock 17,235,296 4 per cent. Funding Stock 687,000 3½ per cent. Conversion Stock 1,826,940 3 per cent. Exchequer Bonds, 1930 456,900 5¾ per cent. Exchequer Bonds, 1925 6,267,800 5 per cent. National War Bonds, 1927 11,456,900 5 per cent. National War Bonds, 1928 (April) 4,822,000 5 per cent. National War Bonds, 1928 (September) 10,818,300 5 per cent. National War Bonds, 1929 475,000 Treasury Bills 215,000 Ways and Means Advances 1,590,000 Cash uninvested 18,696