§ On the bringing up the Report of the Committee of Supply,
§ MR. W. WILLIAMSwished to know whether anything were to be done relative to the price of Exchequer bills?
§ The CHANCELLOR OF THE EXCHEQUERsaid, that they had no power to alter the price of Exchequer bills until June next.
§ MR. HUMEsaid, that the Chancellor of the Exchequer should take the opinion of the House before settling the price of Exchequer bills. It was his duty to watch the market, and to make the cheapest possible bargain for the public.
§ The CHANCELLOR OF THE EXCHEQUERsaid, that the present object was 340 merely to complete an arrangement which, had been commenced in January last. The rate of interest was settled then, and it was not in the power of the House or the Minister to alter the contract. Next June it would be open to them to propose a new arrangement.
§ MR. GLYNthought that the right hon. Gentleman was under some mistake, as the bills of January had to be renewed in March. What they were now voting would apply to June. He believed there was no instance within the last century in which the interest on Exchequer bills had been lower than at present, but there never was a time when there was so much money lying unemployed in the Bank of England as at the present time. He thought it was the bounden duty of the Chancellor of the Exchequer to go into the money market and make the best arrangement he could, always taking care that the rate he fixed on was not so low as to bring the bills into disrepute.
§ The CHANCELLOR OF THE EXCHEQUERcould assure the hon. Gentleman who last addressed the House, that he entirely agreed with the principles which he had laid down respecting Exchequer bills. He was perfectly aware that any rate which had been paid in former times did not apply to the time in which we lived. But he only rose to correct the hon. Gentleman in saying that the rate of interest oft Exchequer bills had not rested with the present Government, since they had been in office, but that the arrangement was made by their predecessors.
§ MR. W. WILLIAMSsaid, the rate was settled in March, and the Exchequer bills were exchanged in June. He thought they ought not to allow the Chancellor of the Exchequer to have this Vote without a distinct understanding what the rate of interest was to be. The present rate of interest was 2l. 5s. 7½d. per annum, which was more than 2¼ per cent. The Bank of England was now lending money at 2 per cent, and he was informed that bills were now discounted in the City at as low a rate as 1½ per cent, and bills which had even six months to run at 2 per cent. He did not see why Government bills should not be considered as good as private bills. He thought that interest at the rate of 1d. per day would be quite sufficient. He considered that the late Chancellor of the Exchequer was guilty of a great job in giving more interest than was requisite.
§ MR. MASTERMANsaid, that a great mistake seemed to have arisen with regard to this question, which had nothing whatever to do with fixing the rate of interest, which the Chancellor of the Exchequer had only power to do when bills became due. The Chancellor of Exchequer had no power in this respect until next June.
§ MR. HUMEsaid, that this was a vote for renewing Exchequer bills, and he thought that that House ought to take the opportunity of fixing the rate of interest.
MR. ALDERMAN THOMPSONsaid, that the Chancellor of the Exchequer would have the power of fixing the rate of interest at the end of the year, but it was not competent for the House now to deal with that question.
§ Resolutions reported.