HC Deb 30 July 1885 vol 300 cc516-8
MR. LABOUCHERE

asked Mr. Chancellor of the Exchequer, Whether he has official knowledge that his predecessor in office intended that the Egyptian Guaranteed Loan should be bought out by the Bank of England and by public tender; why, seeing that the premium at which the Loan now stands shows that this would have caused a saving to the Egyptians of above £200,000, this arrangement has been altered; what is the commission paid to the issuing houses; whether any arrangement has been come to assigning a portion of the issue to Messrs. Rothschild and a portion to Mr. Bleichroeder of Berlin; whether he will see that, in order to preclude any advantage being given to the issuing houses and to their friends and clients in the allotment of the Loan, care will be taken to insure that all applicants for allotments below a fixed figure receive allotments in full should the number of such applicants not exceed the total to be allotted, and that, should such applications not cover the total amount required, other applicants shall each receive an equal amount of the Loan, provided that allotments distributed in this manner cover the total amount required; and, whether he will cause a list of the applicants for allotment, the amount for which each of them applied, and the amount of the Loan which has been allotted to each of them, together with their places of abode, their places of business, if any, and their professions or occupations, to be sent to the Treasury, in order that this list may be submitted to this House, should it decide that it is advisable?

THE CHANCELLOR OF THE EXCHEQUER

I am informed that my Predecessor in Office intended that the Egyptian Guaranteed Loan should be brought out by the Bank of England, and by public tender. I very much doubt whether this arrangement would have caused the saving stated by the hon. Member; but it has been altered mainly in consequence of questions of an International character having arisen with respect to the issue of what I must remind him is a loan depending on an International Guarantee. The commission to be paid to Messrs. N. M. Rothschild, who are the agents for the issue of the loan in London, is £500 per £1,000,000, and reasonable incidental expenses. MM. de Rothschild Frères are agents for the issue of one-third of the loan in Paris, and Herr Bleichröder is agent for the issue of one-third of the loan in Berlin. The allotment will, I presume, be made according to the usual practice observed in such cases. I do not see upon what grounds I could call upon them to pursue the course indicated by the hon. Member, or to furnish a list of the applicants, especially in view of the fact already mentioned, that two-thirds of the loan is offered for subscription in foreign capitals.

MR. LABOUCHERE

I would ask the right hon. Gentleman whether the £500 per £1,000,000 to be paid to Messrs. Rothschild includes the brokers' commission; whether there is any arrangement by which Messrs. Rothschild have a right to take £15,000,000 of the loan at the price of issue, 95½; whether there is any further arrangement by which that firm have a right to be paid the £1,000,000 sterling which they have advanced at this 95½—thereby giving them a profit, taking the present premium, of £20,000 upon the original £1,000,000 advanced, and £40,000 if they choose to exercise their option as to the other £2,000,000?

THE CHANCELLOR OF THE EXCHEQUER

I must ask the hon. Member to put these Questions on the Paper?

MR. LABOUCHERE

Perhaps it will be more convenient if I call attention to the matter, and ask further Questions on the Appropriation Bill.

THE CHANCELLOR OF THE EXCHEQUER

I think it would be well that the House should be in full possession of the facts. There has, of course, been a Correspondence on the subject between Her Majesty's Government and Messrs. Rothschild, and that Correspondence will be laid on the Table and printed as soon as possible.

MR. LABOUCHERE

Will that Correspondence be in the hands of hon. Members in time for them to call attention to the matter on the Appropriation Bill?

THE CHANCELLOR OF THE EXCHEQUER

I will do my best to have it ready in time.