§ Mr. MIDDLETONasked the Chancellor of the Exchequer why the rate of interest allowed to depositors in the special investment department of the Carlisle and North-Western Counties Savings Bank has been compulsorily reduced by direction of the National Debt Commissioners; and whether, in view of the fact that approximately 5 per cent. interest is being paid on national savings certificates, he will cause the savings bank in question to be given authority to increase the rate of interest allowable to depositors in the special investment department?
§ Mr. BALDWINThe National Debt Commissioners were given full powers of control of the special investment departments of trustee savings banks by the Trustee Savings Banks Act of 1918; and, in consequence of the reduced rates of interest at which the short-term loans available as investments for the funds of those departments have for some time past fallen to be placed or renewed, the Commissioners have recently deemed it necessary to direct that the maximum rate of interest allowed by any such Department to its depositors shall, until further notice, be 3 per cent. per annum. The rate of interest which, after providing for expenses of management, savings banks having special investment departments can safely allow upon moneys deposited in those departments, does not depend on the interest-yield of National Savings Certificates, which, however, are an investment open to savings bank depositors within the same limit as to other persons. Nor do the certificates now issued yield 5 per cent. I am not prepared to interfere in any way with the direction which the Commissioners have most properly given with regard to the rate of interest payable on the deposits referred to.