§ 51. Mr. Levyasked the Chancellor of the Exchequer whether his attention has been drawn to the fact that many companies with liquid assets have, on account of the growing need for working capital and the uncertainty as to the future level of taxation, abstained from the purchase of Defence Bonds; and whether he will give consideration to this aspect of national finance?
§ Sir K. WoodThe first duty of companies, clearly, is to subscribe for all the National War Bonds which they can. I appreciate that it is, no doubt, necessary for companies to keep a proportion of their assets in a more liquid form, for the reasons indicated by my hon. Friend. In so far as liquid resources are expected to be needed to meet future taxation—whether immediate or in prospect—they can be deposited with the Board of Inland Revenue on account of future taxation liabilities, and such deposits will be welcomed. For the rest, resources which have to be kept in liquid form can be lent to the Government in Treasury bills.