EXCHEQUER BILL FUNDING. (Hansard, 2 October 1841)

Mr. Williams
begged to ask the Chancellor of the Exchequer whether or no the whole amount of 5,000,000l. had been subscribed for, and, if not, what portion had been subscribed for—how much in Exchequer Bills, and how much in money?

§ The Chancellor of the Exchequer
had staled the other evening, that the amount subscribed for altogether was 3,644,000l. What were the proportions of money and Exchequer Bills he was not able to say, but the hon. Gentleman would see that the information, if he could give it, would be of no use, because the parties were at liberty in completing their subscriptions to make up part in money, or the whole in Exchequer Bills, as they might find convenient. He might say, that a large proportion had been subscribed for in Exchequer Bills, but it did not follow that, at the conclusion of the settlement, money might not be given instead of them.

Mr. Williams
said, that if the whole amount of 3,500,000l. should be settled for in Exchequer Bills, it would follow that the right hon. Gentleman would fund 1,000,000l. more than he originally contemplated. He would therefore be obliged 1089 to have recourse to the second portion of the bill, to raise the 2,400,000l. deficient in the revenue, by the mode of the commissioners for the reduction of the national debt inscribing their names in the three per cents, with a view of sale afterwards; at least so he understood if. He considered that, by the terms of the bill, it was imperative to accept the subscriptions of Exchequer Bills to the amount already subscribed. By that operation, the right hon. Gentleman would add to the funded debt more than was actually necessary to relieve the Exchequer Bill market according to his view. Looking at the present state of the money market, he did not see any necessity whatever of reducing the amount of Exchequer Bills, when he considered there was a saving of interest on Exchequer Bills, as compared with the funded debt. The last return he had seen stated, that the highest amount of interest on Exchequer Bills was 2d. per day. [The Chancellor of the Exchequer: It is 2 ¼ d. now.] He had seen no return of that kind. Such being the case, there was no difference.

§ The Chancellor of the Exchequer
said, that such being the case, the interest on Exchequer Bills was greater than the interest in the funds, and the public would gain the difference of some shillings in the rate of interest. With regard to the bill, it gave to the Lords of the Treasury the power of making up the sum necessary at the completion of the subscription by the issue of Exchequer Bills, or the sale of stock in the market. The hon. Gentleman would not wish him to state which course the Government intended to take, as it might produce an influence on the market, which the hon. Gentleman must feel, would not be desirable. The Government had the power to do whatever might seem to them at the time most advantageous for the public interests.