24. Provision as to lunacy funds.

An Act for reducing the rate of Interest

on the National Debt.

(27th March 1888.)

WHEREAS by the National Debt Act, 1870, it was provided that the new three pounds per cent. annuities (herein-after referred to as new three per cent. stock), being part of the National Debt, should, until redemption, continue to be payable by equal half-yearly dividends on the fifth day of April and the fifth day of October in each year, and should continue redeemable by Parliament at any time after the tenth day of October one thousand eight hundred and seventy-four at the rate of one hundred pounds sterling for every one hundred pounds of the capital sums in respect whereof those annuities were payable:

And whereas, with a view of reducing the rate of interest on the National Debt, it is expedient to provide for the conversion of the new three per cent. stock into stock of a lower denomination, and for the redemption of such portions of that stock as may be held by persons dissenting from such conversion :

And whereas it is also expedient, with the same view, to provide facilities for the conversion of the consolidated three pounds per cent. annuities and the reduced three pounds per cent. annuities (herein-after referred to respectively as consolidated three per cent. stock and reduced three per cent. stock), into stock of a lower denomination :

Be it therefore enacted by the Queen's most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, as follows:

PART I.

CONVERSION OR REDEMPTION OF NEW THREE PER CENT. STOCK.

1.-(1.) All holders of any amount of new three per cent. stock who do not on or before the twenty-ninth day of March one thousand eight hundred and eighty-eight, or such later date as is allowed in special cases by this Act,

signify dissent in manner herein-after mentioned, shall continue to be entitled to receive the dividend payable on that stock on the fifth day of April one thousand eight hundred and eighty-eight, but shall as from that day receive in lieu of that amount of new three per cent. stock an equal nominal amount of stock to be created in pursuance of this Act and in this Act referred to as new stock, and the reception of that amount of new stock shall not be considered to be a change or variation of investment by the holder.

(2.) Åll holders of new three per cent. stock who signify their dissent as aforesaid, or their executors, administrators, or assigns, shall be paid off in such order, at such time or times, and in such manner as Parliament may direct: Provided that all such holders, or their executors, administrators, or assigns, may at any time or times before the first day of August one thousand eight hundred and eighty-eight, unless Parliament shall in the meantime otherwise direct, be paid off the whole or any part of their stock, either in one sum or in such proportions, and in such order and manner, as the Treasury may direct, at the rate of One hundred pounds sterling for every one hundred pounds of the capital sums in respect of which the annuities constituting the said stock are payable, together with the payment of all arrears of those annuities at the rate of three pounds per cent. per annum, including the proportionate part accrued since the last date for the payment of dividends.

2. (1.) The new stock shall consist of a capital stock of perpetual annuities, which shall for the year ending the fifth day of April one thousand eight hundred and eighty-nine yield dividends at the rate of three pounds per cent. per annum, and shall thereafter yield dividends at the rate of two pounds fifteen shillings per cent. per annum until the fifth day of April one thousand nine hundred and three, and shall thereafter yield dividends at the rate of two pounds ten shillings per cent.

that day shall be redeemable by Parliament on such notice, at such time or times, and either in one sum or in such sums or proportions, and in such order and manner as Parliament may direct, at the rate of one hundred pounds sterling for every one hundred pounds of the capital sums in respect of which the annuities constituting the stock are payable, together with the payment of all arrears of those annuities, including the proportionate part accrued since the last date for the payment of dividends.

(3.) The new stock shall form part of the National Debt, and the annuities constituting the same shall be payable by equal quarterly dividends on the fifth day of January, the fifth day of April, the fifth day of July, and the fifth day of October in every year, and the first of the said dividends shall be payable on the first of the said quarterly days after the creation of the stock.

(4.) The new stock shall be called two and three quarters per cent. consolidated stock until the fifth day of April one thousand nine hundred and three, and thereafter shall be called two and a half per cent. consolidated stock.

(5.) The dividends on the new stock shall be charged on the Consolidated Fund of the United Kingdom, and paid out of the permanent annual charge of the National Debt, and the provisions of the National Debt Act, 1870, shall apply in the same manner, so far as is consistent with this Act, as if the new stock were one of the stocks of perpetual annuities described in the First Schedule to the National Debt Act, 1870, and the Treasury may, by warrant, declare that the new stock shall be subject to Part Five of that Act.

3.-(1.) Dissent from the conversion of new three per cent. stock into new stock shall be signified to the Bank in writing, with the amount of the stock to which the dissent relates.

(2.) The dissents shall be entered in books kept by the Bank for that purpose, and be numbered in the order in which they are received by the Bank.

(3.) The transfer of any stock to which a dissent relates shall be subject to the prescribed conditions, and shall be entered in the books of the Bank under the same number as was fixed for the stock when the dissent was so signified.

4. If any holder of new three per cent. stock is not within the United Kingdom at any time between the twelfth day of March one thousand eight hundred and eighty-eight and the twenty-ninth day of March in the same

year, both days inclusive, his dissent may be signified at any time on or before the earliest of the following days, namely, the tenth day after his return to the United Kingdom, or the first day of May one thousand eight hundred and eighty-eight, or, if between the said twelfth day of March and the said first day of May he was not within any part of Europe, the first day of September one thousand eight hundred and eighty-eight.

5.-(1.) Where an executor, administrator, guardian, trustee, or committee of the estate of a person of unsound mind has, as such, the control over any new three per cent. stock standing either in his own name or in the name of any testator or intestate, or of any infant or person of unsound mind, his dissent for the purposes of this Act may, if he is within the United Kingdom at any time between the twelfth day of March one thousand eight hundred and eighty-eight and the twelfth day of April one thousand eight hundred and eighty-eight, be signified at any time on or before the said twelfth day of April, but if he is not then within the United Kingdom, then within the time fixed by this Act in the case of stock holders out of the United Kingdom.

(2.) If either of any two or more of any such executors, administrators, guardians, trustees, or committees is out of the United Kingdom, the time within which the dissent may be signified shall in each case be regulated with reference to the most distant of them.

(3.) Provided that where any new three per cent. stock belonging to any joint stock company, whether registered under the Companies Act, 1862, or not, or to any body of persons corporate or unincorporate, not being trustees of a charity, stands in the names of trustees instead of in the names of that joint stock company or body, those trustees shall not be deemed trustees within the meaning of this section.

6.-(1.) Where any new three per cent. stock is standing in the name or in the books of any of the following officers, namely,

(a.) Her Majesty's Paymaster-General on behalf of the Supreme Court of Judicature in England; or

(b.) the Accountant to the Court of Session in Scotland; or

(c.) the Accountant-General of the Supreme Court of Judicature in Ireland;

dissent from the conversion thereof may, on the request and on behalf of any suitors or other persons interested therein, be signified by those officers respectively, and may be so signified at any time on or before the twelfth

day of April one thousand eight hundred and eighty-eight.

(2.) The High Courts and the Court of Session respectively may, from time to time, on application by summons in chambers or in such other way as may be directed, as respects the High Court in England by the Lord Chancellor, as respects the Court of Session by the Lord President, and as respects the High Court in Ireland by the Lord Chancellor of Ireland, make general or special orders as to signifying dissents with respect to new three per cent. stock, or as to any other thing relating to that stock or the dividends thereon, or to the stock to be created in lieu thereof, or to the application of any such stock, or of the dividends thereon.

7. Where any new three per cent. stock is standing in the names of the official trustees of charitable funds, dissent from the conversion thereof shall be signified by those trustees on the request of the trustees or persons acting in the administration of the charity to which that stock belongs, and may be so signified at any time on or before the twelfth day of April one thousand eight hundred and eightyeight.

PART II.

POWER TO EXCHANGE CONSOLIDATED AND REDUCED THREE PER CENTS. FOR NEW STOCK. 8.-(1.) Any holder of any amount of consolidated three per cent. stock or reduced three per cent. stock may, by assent signified at any time on or before the twelfth day of April one thousand eight hundred and eightyeight, or such later date as may under this Act be allowed in special cases, exchange that amount for an equal nominal amount of new stock, and such an exchange shall not be considered to be a change or variation of investment by the holder.

(2.) Where a person exchanges consolidated three per cent. stock in pursuance of this section he shall on the exchange thereof become entitled to receive in the prescribed manner and at the prescribed time a dividend for one quarter ending the fifth day of April one thousand eight hundred and eighty-eight on the stock given in exchange at the rate of fifteen shillings for every one hundred pounds of the nominal amount of that stock (being the amount of interest accrued on that stock between the fifth day of January one thousand eight hundred and eighty-eight, and the fifth day of April in the same year), and shall receive the first quarterly dividend on the

new stock on the fifth day of July one thousand eight hundred and eighty-eight.

(3.) Where a person exchanges reduced three per cent. stock in pursuance of this section he shall be entitled to receive the dividend payable on that reduced three per cent. stock on the fifth day of April one thousand eight hundred and eighty-eight, and shall receive the first quarterly dividend on the new stock on the fifth day of July one thousand eight hundred and eighty-eight.

9.-(1.) Where any consolidated three per cent. stock, or reduced three per cent. stock, is standing in the name or in the books of any of the following officers, namely,

(a.) Her Majesty's Paymaster General, on behalf of the Supreme Court of Judicature in England; or

(b.) the Accountant to the Court of Session in Scotland; or

(c.) the Accountant General of the Supreme Court of Judicature in Ireland;

the Lord Chancellor in the case of stock standing in the name of Her Majesty's Paymaster General, the Lord President of the Court of Session in the case of stock standing in the name of the Accountant to the Court of Session, and the Lord Chancellor of Ireland in the case of stock standing in the name of the Accountant General of the Supreme Court of Judicature in Ireland, may, with the approval in each case of the Treasury, make regulations as to the mode in which that stock or any part thereof may, with the consent of the person to whom the dividends on the stock are for the time being payable (which consent any trustee, or other person acting in a fiduciary character, is hereby authorised to give), or, if the dividends are being accumulated, then with the consent, in the case of England or Ireland, of the judge of the High Court to whose court the cause or matter to the credit of which the stock is standing is attached, or where the cause or matter is not so attached, then with the consent of any judge of the said Court, and with the consent, in the case of Scotland, of the Court of Session, be exchanged for an equal nominal amount of new stock. Provision may be made by such regulations that in specified classes of cases the Lord Chancellor, the Lord President of the Court of Session, or the Lord Chancellor of Ireland, as the case may be, may on behalf of the persons interested in any such stock as aforesaid consent to the exchange thereof, unless dissent from such exchange is signified within the time and in the manner fixed by the regulations.

(2.) Where any consolidated three per cent. stock or reduced three per cent. stock is

standing in the name of the official trustees of charitable funds, an exchange thereof in pursuance of this Act shall be made on the request or with the consent of the trustees or persons acting in the administration of the charity to which that stock belongs: Provided that the Treasury may make regulations whereby the Charity Commissioners for England and Wales may on behalf of the said trustees or persons consent to the exchange of the stock unless dissent from such exchange is signified within the time and in the manner fixed by the regulations.

(3.) Subject to rules of court, any jurisdiction given by this Act to a judge of the High Court shall be exercised by a judge of the Chancery Division.

(4.) In the case of stock standing in the names of

(a.) Any such officers or official trustees as aforesaid; or

(b.) Any trustee or other person acting in a fiduciary character; or

(c.) Persons absent from the United Kingdom between the twelfth day of March one thousand eight hundred and eightyeight and the twelfth day of April in the same year;

the stock may be exchanged within such extended time as may be prescribed.

10.-(1.) Whereas the holders of consolidated three per cent. stock and reduced three per cent. stock are entitled to twelve months notice before redemption; and whereas it is expedient to facilitate the prompt conversion of those stocks into new stock, and to reduce the amount thereof liable to redemption hereafter; the Treasury shall authorise the Bank to make, in the prescribed manner and at the prescribed time, to such of the holders of either of those stocks as surrender their stock in exchange for new stock, in consideration of their foregoing their right to such notice as aforesaid, a payment of five shillings for every hundred pounds of the new stock given in exchange, and may also, if they think fit, authorise the Bank to pay in respect of stock so surrendered an allowance to recognised agents at a rate not exceeding one shilling and sixpence per cent.

(2.) The sums of five shillings per cent. authorised by this section to be paid may be treated by trustees and others as income, but if so treated shall not be subject to income tax.

PART III.

WAYS AND MEANS.

11. The Treasury may at any time, and from time to time, by warrant addressed to the Bank, direct the creation of such amounts of new stock as may be required to replace stock converted or exchanged under this Act, or to raise money for paying off such holders of new three per cent. stock as dissent from the conversion thereof.

12. (1.) The Treasury may from time to time raise any sums required for paying off such holders of new three per cent. stock as dissent from the conversion thereof either by the creation of new stock as aforesaid, or by the issue of Exchequer bonds, or Exchequer bills or Treasury bills, or by otherwise borrowing the same (for a period not exceeding twelve months) from such persons as may be willing to lend the same on the credit of the charge created by this Act on the Consolidated Fund, or by all such means, and the sums so raised shall be paid into the Exchequer, and form part of the Consolidated Fund.

(2.) The principal money borrowed in pursuance of this section, otherwise than by the creation of new stock, and all interest from time to time due thereon (not exceeding the rate of five per cent. per annum), shall be charged on and be payable out of the Consolidated Fund, or the growing produce thereof, at such times in each year as may be fixed by the Treasury.

(3.) In the event of its being considered by the Treasury expedient to substitute new stock for any Exchequer bonds, Exchequer bills, or Treasury bills issued, or for money otherwise borrowed under this Act, the Treasury may from time to time by warrant addressed to the Bank direct the creation of new stock for that purpose.

13.-(1.) All sums paid for defraying expenses incurred in pursuance of this Act, or for providing any dividend which by reason of any conversion or exchange effected under this Act becomes payable in the then current financial year instead of the next financial year, shall be charged on and be payable out of the Consolidated Fund or the growing produce thereof, but shall not be payable as part of the permanent annual charge for the National Debt.

(2.) The Treasury may from time to time, as they think fit, repay to the Consolidated Fund any portion of the money issued thereout for the purposes of this section, and may, with a view to provide money for such repayment,