§ Major Lyonsasked the Under-Secretary of State for the Colonies whether he can indicate the arrangements that have been made for the collection of large and small war savings from all peoples throughout the Colonial Empire, either in the form of bonds or certificates; whether he is satisfied with the progress being made; and whether he can publish any figures of the results so far achieved to date?
§ Mr. George HallThere was manifested very early in the war a general desire on the part of the Colonial Empire to make their full contribution to the war savings programme; but in view of the many administrative difficulties in the way of arranging for the sale of United Kingdom issues of war bonds and certificates in the Colonial Empire, Colonial Governments were advised to issue securities of their own with the intention of relending the whole proceeds to the United Kingdom. It was emphasised that the terms of such local issues should conform to the declared policy of His Majesty's Government in regard to stable interest rates: the yields offered, after allowance for such factors as length of period, were to approximate to those of similar United Kingdom issues, even though such terms might compare unfavourably with those of other local issues. Colonial Governments have been supplied with copies of prospectuses and other material, including propaganda pamphlets, likely to be of assistance in their war savings campaigns, and the help of the National Savings Committee has been enlisted to maintain a regular supply of current literature to every Colony.
495WColonies were also recommended to encourage further investment in their Savings Banks, on the understanding that additional funds would be invested by the latter in British Government securities in the form of subscriptions to new issues. On the remittance of the proceeds of these Colonial loans or certificates, the Treasury issue certificates of indebtedness in appropriate terms, providing for repayment at the end of specified periods corresponding with the maturity of the local loan, or for interim repayments as required in the case of an issue which carries privileges of early encashment similar to the terms of United Kingdom 3 per cent. Defence Bonds and National Savings Certificates.
I have reason to be satisfied with the response of the Colonial Empire to the suggestions offered. Local war bonds or savings certificates are now being sold in 13 Colonial territories; United Kingdom bonds and savings certificates are on sale in Malta, where unusual conditions justified the necessary special arrangements; and the issue of war loans and sayings certificates is under consideration in certain other Dependencies which for one reason or another have not so far felt able to take the step. My right hon. Friend the Chancellor of the Exchequer referred on 9th September, in replying to a Question, to a circular despatch which had been addressed to all Colonial Governments urging further efforts in this direction.
Subscriptions of which notification has been received up to 14th November, 1941, aggregate some £14,000,000, made up as follows:
£ Bermuda … … 262,000 Ceylon … … 8,096,100 East Africa … … 1,131,340 Gold Coast … … 16,644 Malaya … … 3,314,506* Mauritius … … 308,625 Nigeria … … 176,362 Northern Rhodesia … … 28,330 Trinidad … … 739,000 £14,072,907 *The proceeds of loans raised in Malaya have been presented to His Majesty's Government by the Malayan Government as a free gift. In addition to loans open to public subscription Colonial Governments have encouraged the making of direct loans to 496W His Majesty's Government free of interest; and over £700,000 has been received from this source.