§ THE CHANCELLOR OF THE EXCHEQUER moved for leave to consolidate and amend the several laws regulating the preparation, issue, and payment of Exchequer Bills and Bonds. He said that about four years ago an Act was passed through Parliament introducing a very considerable alteration into the laws with respect to Exchequer Bills. There was, however, one important part of the subject which was not 1482 then dealt with. The manufacture of Exchequer Bills had up to the present time been conducted under the immediate superintendence of the Exchequer Office, but upon the retirement of Lord Monteagle and the reconstitution of the Department, the question arose, where it was desirable that the manufacture should be carried on? There was, he thought, no question whatever that the Bank of England was incomparably superior to any other establishment in the preparation of instruments of credit, not only on account of the facilities and the security which it afforded, but also because of its long practice in the manufacture of bank notes, which were supposed to be the most perfect pieces of workmanship in the world. Exchequer Bonds and Exchequer Bills, considered with regard to the paper of which they consisted, were strictly analogous to bank notes. It was highly desirable also that the Government should have only one agent for the purpose of such a manufacture, and that that agent should be the Bank of England. The removal of the instruments in question to that establishment was the chief object of the Bill. He might add that, although Exchequer Bills admitted of having the rate of interest lowered, they did not admit of its being raised, and, seeing that the rate of discount in the case of other securities ranged from 3 and 4 to 7 or 8 per cent, their position was somewhat unfavourable. Under these circumstances, to give the holder of those Bills the power of paying them into the revenue was to afford him a facility which was of considerable advantage.
§ MR. KINNAIRDsaid, that he was glad that the attention of the Chancellor of the Exchequer had been called to the subject of Exchequer Bills. Under the former management the country sustained a loss of three or four hundred thousand pounds through a spurious issue.
§ Motion agreed to.
§ Bill to consolidate and amend the several Laws regulating the preparation, issue, and payment of Exchequer Bills and Bonds, ordered to be brought in by Mr. CHANCELLOR of the EXCHEQUER and Mr. CHILDERS.
§ Bill presented, and read the first time. [Bill 46.]