CO885-(25-26) — Page 275

266

PUBLIC RECORD OFFICE

Reference:

wumimmimiCO.885/25

PUBLIC RECORD OFFICE, LONDON

ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC-

COPYRIGHT PHOTOGRAPH—NOT TO

t

2926

10

No. 8.

COLONIAL OFFICE to TREASURY AND PUBLIC TRUSTEE.

[Answered by Nos. 9 and 10.]

Downing Street, 23rd January, 1917.

SIR,

I AM directed by Mr. Secretary Long to transmit [for the consideration of the Lords Commissioners of the Treasury,] [for your consideration,] the accom- panying copy of a letter from the Crown Agents for the Colonies inquiring whether the Four-and-a-half per cent. War Stock, 1925-45, and the several issues of Exchequer Bonds which they hold on behalf of the Enemy Surplus Assets Accounts of the various Colonies and Protectorates, should be converted into the new Five per cent. War Loan.

2. In arriving at a decision Mr. Long would propose to be guided by the action taken in this country regarding enemy assets invested in War Loan, and I am to request to be favoured with an expression of [their lordships'] [your] views. on the question.

5182

SIR,

3. A similar letter is being addressed to the Public Trustee.] [Treasury.]

No. 9.

I am, &c.,

G. GRINDLE.

PUBLIC TRUSTEE to COLONIAL OFFICE.

(Received 29th January, 1917.)

Public Trustee Office, Kingsway,

London, W.C., 27th January, 1917. WITH reference to your letter of the 23rd instant,† enclosing copy of a letter from the Crown Agents for the Colonies inquiring whether the Four-and-a-half per cent. War Loan Stock, 1925-45, and the several issues of Exchequer Bonds which they hold on behalf of the Enemy Surplus Assets Accounts of the various Colonies and Protectorates should be converted into the new Five per cent. War Loan, and asking what action has been taken in this country regarding enemy assets invested in War Loan, I have to ask that you will be good enough to inform Mr. Secretary Long that I have not invested any enemy moneys in War Loan, as I prefer to have recourse in this connexion to British Government obligations of a more liquid

nature.

I need hardly add that did I hold any of the existing War Loan Stock or Exchequer Bonds I should convert them into the new War Loan, which course is being largely followed in connexion with the trusts which I control as Public Trustee.

5898

No. 10.

11

In reply I am to say, for the information of Mr. Secretary Long, that my lords feel that it is hardly open to them, situated as they are, to express an opinion on this point. They have answered a similar inquiry from the Custodian for Scotland in this sense, and have informed him that he must exercise his own discretion having regard to the conditions under which he holds his investments under the Trading with the Enemy Acts.

My lords note that the Secretary of State is also communicating with the Public Trustee.

5898

SIR,

No. 11.

I am, &c.,

JOHN BRADBURY.

COLONIAL OFFICE to TREASURY.

[Answered by No. 12.]

Downing Street, 6th February, 1917. I AM directed by Mr. Secretary Long to acknowledge the receipt of your letter of the 31st ultimo,* with regard to the question of the conversion into the new Five per cent. War Loan of assets of enemy firms held by the Crown Agents for the Colonies on behalf of Colonial Governments.

2. It is assumed that the ultimate disposal of these balances which, theoreti- cally, are held for the benefit of their enemy owners after the War, will be made to depend upon the treatment by enemy Governments of the assets of British subjects in enemy countries. Meanwhile, the Secretary of State inclines to the view that he is under no obligation to secure the very highest rate of interest which it is possible to obtain upon these investments, especially as it appears that any increase in such interest would be at the expense of the British taxpayer.

3. As the Lords Commissioners of the Treasury do not see their way to indicate their opinion on this point Mr. Long will not direct the Crown Agents to convert their holding on account of surplus enemy assets in Four-and-a-half per cent. War Stock. As regards the Five per cent. and Six per cent. Exchequer Bonds concerned, he will take whatever action he is advised is more convenient from the Treasury point of view, and he would be glad to receive, as soon as possible, an indication of their lordships' wishes.

I am, &c.,

7796

I am, &c.,

C. J. STEWART,

Public Trustee.

SIR,

TREASURY to COLONIAL OFFICE.

(Received 1st February, 1917.)

[Answered by No. 11.]

Treasury Chambers, 31st January, 1917.

SIR,

I HAVE laid before the Lords Commissioners of His Majesty's Treasury Mr. Grindle's letter of the 23rd January† with reference to the question whether certain investments held by the Crown Agents for the Colonies on behalf of the Enemy Surplus Assets Accounts of various Colonies and Protectorates should be converted into the new Five per cent. War Loan.

No. 12.

TREASURY to COLONIAL OFFICE.

(Received 12th February, 1917.) [Answered by No. 13.]

G. GRINDLE.

Treasury Chambers, 12th February, 1917.

I HAVE laid before the Lords Commissioners of His Majesty's Treasury Mr. Grindle's letter of the 6th instant relative to the question of the conversion into Five per cent. War Loan of the Five per cent. and Six per cent. Exchequer Bonds held as

assets of enemy firms by the Crown Agents on behalf of Colonial Governments.

In reply, I am to request you to inform Mr. Long that, looking at the question exclusively from the point of view of the interests of the Exchequer, my lords are of opinion that the conversion of both Five per cent. and Six per cent. Exchequer Bonds is an advantageous transaction unless there is a strong probability that the resulting stock will have to be released within the next few years.

In that event, if larger sums are involved, the damage to the credit of the stock from forced realization might easily outweigh the advantages of having sub- stituted a long-term for a short-term obligation.

* No. 7.

† No. 8.

* No. 10.

↑ No. 11.