§ Mr. Hammersleyasked the Chancellor of the Exchequer what annual increase of cost to the State is involved by reason of the transfer by the banks of £750,000,000 from Treasury deposit receipts to 2½ per cent. and 3 per cent. Government loans?
§ Sir J. AndersonI assume my hon. Friend refers to the figures given by my predecessor on l0th July last to my hon. Friend the Member for Chislehurst (Sir W. Smithers), showing that in the three years ended 30th June, 1943, subscriptions of £215,000,000 to 3 per cent. Savings Bonds and of £523,000,000 to 2½ per cent. National War Bonds were covered by repayments of Treasury Deposit Receipts 1085W before maturity. The difference between the annual interest charge on these Bonds and that on the same amounts if reinvested each six months in Treasury Deposit Receipts at 1⅛ per cent. is £11,300,000. My hon. Friend will, however, appreciate that it cannot be assumed that all these moneys, if held to maturity, would then have been re-lent in the form of Treasury Deposit Receipts. I would also remind him that subscriptions covered by encashments of Treasury Deposit Receipts include subscriptions on behalf of the banks' customers as well as those on the banks' own account.