§ MR. MOLLOY (Queen's County, Birr)I beg to ask Mr. Chancellor of the Exchequer if it be a fact that he has cancelled a considerable portion of the outstanding Three Per Cent Consolidated Debt, by exchanging it for Local Loans Stock at a price below the quotation current in the market, and how much below the current quotation; 977 by what means he obtains command of the Local Loans Stock for this purpose; and, whether he proposes to increase the Floating Debt to the extent of the un-cancelled portion of the Three Per Cents by an issue of Exchequer bonds, and so burden the market with that form of security?
§ * MR. GOSCHENIt is a fact that the National Debt Commissioners have bought a considerable amount of the outstanding Three per Cents, though not so large an amount as I have seen stated in the Press, and have also sold Local Loans Stock to some of the parties from whom they bought those Three per Cents. In fixing the price at which to sell the Local Loans Stock, the Commissioners have been able to arrive at, and to act upon, the closest possible estimate of its market value in large amounts, from the fact that tenders amounting to £7,000,000 were lately received for the two and a-half millions of Local Loans Stock offered to the public. The terms of such tenders afford something like an infallible test of the present market value of the Stock. The Local Loans Stock thus sold by the National Debt Commissioners was obtained by them at par in exchange for Consols and for the bonds of the Public Works Loan Board, both at par. As the amount of Local Loans Stock held by the Commissioners on behalf of savings banks was very large, and as the Stock for some time was not as current as was desirable, it has been a great incidental advantage to interest large banks and other leading institutions in this Stock, the future of which, as the means of raising money for various local purposes claiming the aid of public credit, is of such immense importance to the community. In reply to the third paragraph of the Question, I do not propose to create Floating Debt to the extent of the still uncancelled portion of the Three per Cents by an issue of Exchequer bonds; but when I introduce the Bill for completing the conversion I shall ask Parliament to allow me a very free hand in dealing with the responsible task of paying off so large a sum.
§ MR. MOLLOYIs it then the fact that Local Loan Stocks were sold at prices below the quotation current in the market at the time?
§ * MR. GOSCHENI have explained to the hon. Member that the prices at which they were sold were fixed in accordance with tenders which were made for Stock in large amounts, and which afforded a much better estimate of the real value of the Stock than a single transaction in a single day on the Stock Exchange. I must ask to be relieved from answering Questions as to the exact prices which are obtained by the National Debt Commissioners. I am dealing with very shrewd men of business, and if, by means of answers in this House, they obtain the opportunity of looking over my hand, while I cannot look over theirs, the public interest will be placed at a very great disadvantage.
§ MR. MOLLOYI will not press the right hon. Gentleman for any more information now, but I beg to give notice that I will call attention to the matter on a future day.