INTERIM REPORT. To the Lorps CoMMISSIONERS OF. His MAJESTY’S TREASURY. MAY 11 PLEASE YOUR ILORDSHIPS, We were appointed by Treasury Minute, dated the 29th April, 1925, to consider what steps should be taken in view of the approaching expiry of the term of the first issue of War Sav- ings Certificates, and to make recommendations. While we have not yet completed our deliberations, we con- sider it desirable to lay before Your Lordships a recommendation on a point of some urgency. We hope to submit our final report at an early date. The present position of the problem we have been considering is as follows. Savings Certificates of the first issue were on sale from the 19th February, 1916, to the 31st March, 1922. These certificates were issued at 15s. 6d. and are repayable after ten years at £1 6s 0d. Certificates of the first issue will thus begin to fall due as early as February, 1926. But in many cases a privilege of prolonga- tion beyond the ten years already exists. Holders of two or more certificates of the same issue, which were not all bought on the same date, have the privilege of prolonging the currency of their earlier-dated certificates until the latest-dated certificate of the same issue, held by them, has run for ten years, the entire holding thus maturing at one date. Certificates which are pro- longed in this way will accumulate in value after the ten years at the rate of interest of one penny per month per certificate originally costing 15s. 6d. Many holders will thus be able to keep their certificates be- yond the ten years; and it appears to us to be desirable that, so far as concerns certificates of the first issue, such an exten- sion should be made possible, under similar conditions as regards interest, in the case of every holder of such certificates. Under the existing arrangements described above the latest date to which certificates of the first issue may be held is the 31st March, 1932, and we recommend that it should now be made permissible for all holders of certificates of that issue to continue to hold them until that date, with interest after the tenth year at one penny per month per certificate originally costing 15s. 6d All the existing privileges attaching to Savings Certificates, e.g., freedom from Income Tax and repayability on demand with accu- mulated interest, should continue to attach to the certificates after prolongation.