§ MR. CALDWELL (Glasgow, St. Rollox)asked Mr. Chancellor of the Exchequer, Whether it is the case, as shown by the published weekly Returns of the Bank of England, that, since January last, the balances at the credit of the Government with that Bank amounted to an average of £5,500,000 sterling during the month of January, of £8,750,000 during the month of February, of £13,750,000 during the month of March, and of £10,000,000 during the period to run of the present month of April; the lowest balance being £4,721,896, on the 25th of January; whether, notwithstanding such large credit balances, the Government, on the 7th of January last, issued Treasury Bills to the amount of £1,600,000, payable three months after date, at a cost to the Treasury of about £8,000; on the 4th of February last issued other Treasury Bills to the amount of £1,500,000, payable three months after date, and to the amount of £500,000 payable six months after date, at a further cost to the Treasury of between £7,000 and £8,000; and on the 27th of February last issued further Treasury Bills to the amount of £1,000,000, payable three months after date, at a further cost to the Treasury of £4,000, amounting in all to a cost or loss to the Treasury of between £19,000 and £20,000; whether, having regard to this large cost or loss, it is possible by legislation to make such a financial rearrangement of the banking business of the Government as will permit of the 158 balances at the credit of the Government being drawn upon before any such borrowing in the public market is resorted to; and, whether he would consider if, when in the months of February, March, and April, when the balance at the credit of the Government is necessarily high and money at the credit of private bankers and in the open market is necessarily low, a large saving to the country could be effected if the Government were authorized to lend such surplus funds, or parts thereof, for short periods on the security of Consols or other Government Stocks?
§ THE CHANCELLOR OF THE EXCHEQUER (Mr. GOSCHEN) (St. George's, Hanover Square)The figures used by the hon. Member are correctly given, except that the £1,000,000 Treasury Bills issued on the 27th of February were for six months, not three months; but it must be remembered that in public deposits which are described as the "balances at the credit of the Government," there are included many other balances besides the Exchequer balance, more especially the balance of the National Debt Commissioners, which it was important to keep at an exceptionally high figure this year in view of the Conversion of Debt Scheme. As regards the Exchequer balance, it was carefully watched during the first nine months of the year, the result of which was that a considerable saving to the State was effected, as referred to in the Budget Statement. The saving was effected by dropping Treasury Bills temporarily, and only renewing them according to actual requirements. During the last three months of the year, to which the hon. Member especially refers, a similar latitude is not allowed to the Treasury; for, under the present law, if Treasury Bills are not renewed within the financial year, the Treasury loses the power of renewing them. In other words, they have to be paid off. Whether or not it would be expedient to remove the restriction raises an important Constitutional question; and the question of employing Government balances is one which is not capable of being dealt with within the limits of an answer to a Question. I am, however, I ready to admit that, as regards the monetary effect of our financial arrangements in the last quarter of the financial year, they are not in all respects so en- 159 tirely satisfactory as to preclude my carefully considering them.