HC Deb 08 March 1888 vol 323 cc564-5
MR. HENRY H. FOWLER (Wolverhampton, E.)

asked Mr. Chancellor of the Exchequer, What amount of Local Loans Stock has been issued; what were the terms of the issue; and, what amounts respectively of Permanent and Floating Debt have been cancelled by the issue of the Local Loans Stock?

THE CHANCELLOR OF THE EXCHEQUER (Mr. GOSCHEN) (St. George's, Hanover Square)

The £36,526,000 Local Loans Stock created was issued to the National Debt Commissioners in exchange for £26,559,000 Three per Cent Stock, and £9,469,000 Public Works Loan Bonds held on account of Savings Banks Funds, all of which were cancelled. Of this amount £18,200,000 has been sold or exchanged with the public. £7,400,000 was exchanged for other Three per Cent Government Annuities on equal terms. Subsequently £600,000 was sold by the Government Broker at an average price of £104 2s. 6d., and the proceeds were applied in the purchase of Consols and Reduced, which were bought for that purpose at an average price of £103 3s. and £103 5s. respectively. Subsequently £10,000,000 were exchanged by public tender for Three per Cent Annuities at at the following average rates for £100 Local Loans Stock: Consols, £101 16s. 7d.; Reduced, £101 6s. 8d.; New, £101 5s. 10d. The total amount of Three per Cent Annuities thus exchanged was—Consols, £2,466,997; Reduced, £1,117,804; New, £6,557,819—total, £10,142,620. Of the Local Loans Stock thus allotted by tender, no portion was taken, as has been asserted, by any Government Department. Since this tender no transactions have taken place, except that £200,000 was given in exchange to a Government Department very soon after the tender. The total amount of Three per Cent Annuities received in exchange for the £18,200,000 Local Loans Stock issued is £18,351,702. This is all Permanent Debt.

MR. HENRY H. FOWLER

With reference to the second paragraph of my Question and the answer that £6,600,000 has been exchanged for Consols and Reduced—on what terms?

MR. GOSCHEN

£7,400,000 was exchanged for Three per Cents on equal terms, Stock for Stock.

MR. HENRY H. FOWLER

Then a Three per Cent Stock issued at par?

MR. GOSCHEN

It was exchanged for Consols. If the right hon. Gentleman wishes to raise an argumentative Question I will be ready to deal with, it on another occasion. I may state that at the beginning it was difficult to ex-change this new Stock for Consols. In the view of many bankers Consols were considered bettor than the new Stock. Though this was an erroneous view, it was the one on which they acted.

MR. HENRY H. FOWLER

Does the right hon. Gentleman mean by Government Departments to include the Bank of England?

MR. GOSCHEN

That is not a Government Department. The Bank tendered for a considerable amount, and so did the Bank of Ireland.