EXCHEQUER BILLS. (Hansard, 12 February 1818)

§ Mr. Grenfell
said, that from some circumstances which had come to his knowledge, he felt it necessary to put a question to the chancellor of the exchequer. A report having prevailed last week in the city, that it was the intention of the right hon. gentleman to propose this session the funding of exchequer bills, and that what were called the twopenny halfpenny bills would be preferred, he understood that on Saturday last a communication was made to the Stock Exchange by the person who usually made known there the intentions of the Treasury, that it was not proposed, on funding exchequer bills, to grant a preference to any particular description of those bills, but to take those that were to be funded out of the general mass. Hence, an impression prevailed in the city, that it was the intention of the right hon. gentleman to fund a considerable number of exchequer bills. He did not wish for any information from the right hon. gentleman as to any part of his financial plan, which might not yet be matured; but, understanding that it was the intention of the right hon. gentleman, in all events, to fund a quantity of ex- 398 chequer bills, he requested him to state whether such was the fact. Because, if such were the purpose of the right hon. gentleman, that purpose should have immediate publicity, in order to put an end to the uncertainty, and gambling speculations, which at present prevailed in the city.

The Chancellor of the Exchequer
said, he had already notified to the House, that it was not his intention to bring forward any part of his financial plan before Easter; and he trusted it would not be thought improper on his part to decline any premature or partial disclosure of that plan. With regard to the communication to the Stock Exchange, the hon. member alluded, he presumed, to that made by the broker of the commissioners for redeeming the National Debt. The fact was, that, understanding a general expectation prevailed, that if exchequer bills were funded, a preference would be given to those bearing an interest of 2½d. a day, he gave directions to have it made known, that if any funding of exchequer bills should take place, no such preference was intended.

§ Alderman Atkins
expressed a wish, that the right hon. gentleman would favour the House with somewhat more of explanation, in order to remove the uncertainty that prevailed. For his own-part, he could not think it desirable to fund any exchequer bills, and so to diminish the floating capital of the country. For how could it be politic to take a measure which must operate to reduce the price of stock? Government could raise money at less than 3 per cent, in consequence of the present price of stock; whereas if that price fell eight or ten per cent, it could not have money under 4 per cent. Such a fall would, he apprehended, be the result of funding, at present, a great quantity of exchequer bills. Another report prevailed, that it was the intention of the right hon. gentleman to propose the raising of a loan for the purpose of buying up the 5 per cents, and this was a plan which he must also deprecate. But at all events, he thought that no danger could result from the right hon. gentleman's explaining what were his views upon the points alluded to.

The Chancellor of the Exchequer
hoped the House would feel the propriety of his silence with regard to the financial plan to be submitted to its consideration, until that plan was fully matured—until, 399 indeed, he was actually proposing to have it carried into effect.

§ Mr. Grenfell
approved of the intention of the right hon. gentleman not to make any premature disclosure of his financial plan. His only object in putting a question to the right hon. gentleman was, to do away the impression in the city, that he had finally made up his mind as to the funding of exchequer bills.