§ 38 and 40. Colonel Crosthwaite-Eyreasked the Secretary of State for the Colonies (1) whether he is now prepared to lower from 100 per cent. the coverage in sterling demanded for the local currency issued by Colonies; and
(2) to what extent regulations permit Colonies to invest in local issues, as against United Kingdom securities, to cover local currency issues made by them.
§ Mr. Lennox-BoydAt present Colonial currency authorities are normally required to invest their funds in sterling securities issued by any of Her Majesty's Governments except those of the territories in which the currency circulates. But I have recently told Colonial Governments that, subject to a review of the individual circumstances of each territory, I would agree in principle to the investment of a small part of the cover for Colonial currencies in locally issued securities. The currencies would still be fully backed and automatically redeemable for sterling. It is not the intention to go beyond this.
§ 39. Colonel Crosthwaite-Eyreasked the Secretary of State for the Colonies to state for the last 10 years the annual revenue accruing to Colonies from funds deposited in this country to cover local note issues, and the amounts payable by the Colonies in respect of long-term loans raised by them in this country.
§ Mr. Lennox-BoydI am arranging for these figures to be compiled and will send them to my hon. and gallant Friend as soon as possible.