EXCHEQUER BILLS. (Hansard, 4 May 1838)

§ The Chancellor of the Exchequer
moved, that the sum of 24,440,550l. be granted for the payment of Exchequer bills now outstanding.

Mr. W. Williams
would take that opportunity of stating that, by raising the rate of interest on Exchequer bills last October, from 1½d. per cent. per diem to 2½d., the right hon. the Chancellor of the Exchequer had thrown away as much of the public money as would cover the recent deficit in the revenue, 600,000l. By the present arrangement, that is, continuing them at 2½d. per cent. per diem, the country would lose at least 200,000l. He deprecated such a course of proceeding, and maintained that the loss incurred on the occasion arose from the incompetence of the right hon. Gentleman.

§ Mr. Hume
desired to know how many millions of the unfunded debt had been reduced in the last year, and how many it was intended to reduce in this?

§ The Chancellor of the Exchequer
declined answering the last question; but, with respect to the former, he stated, that the debt in 1836 was 28,976,000l.; in 1837, 26,976,000l.; and in 1838, 24,440,000l. He denied altogether the accuracy of the hon. Member for Coventry's inductions, and asserted, that that hon. Member's suggestion, if adopted, would lead to the same calamitous results as he affected to lament. Whenever the hon. Member thought proper to bring forward a motion on the subject he should be ready to meet it, but if the Government now attempted to force down the rate of interest on Exchequer bills it would only cause an over-speculation in the money market, and entail on the country the disastrous consequences from which it was only just recovering in respect to a recent occasion.

§ Sir Robert Peel
said, that he was not prepared to acquiesce in the theory laid down by the Chancellor of the Exchequer. He did not think there was any necessity or propriety in giving a large interest for money raised by Exchequer bills. It was a dangerous position to adopt, that a Minister was justified in influencing the money market by such means.

§ The Chancellor of the Exchequer
said, that the right hon. Gentleman was carrying his principle farther than he intended. He had no choice but to raise the interest of his Exchequer bills to make them float in the market. However, he never intended to influence the money market by this proceeding.

§ Sir Robert Peel
said, that it appeared to him that the rule which was found best for individuals, in such a case, was also the best for States, that was, to make the best terms they could.