HC Deb 20 September 1909 vol 11 cc13-4
Mr. FELL

asked the Chancellor of the Exchequer if the purchases of Consols on behalf of the Government have been continued on the usual scale; and, if so, if he can account for the continued weakness of that stock and the low price which rules for it?

Mr. HOBHOUSE

The amount of the purchases and sales by the Government varies very greatly, according to the amount of Sinking Fund and other moneys available. There cannot be said to be any usual scale. The purchases during the last six months have, however, been somewhat above the average for the corresponding periods of the last 10 years. I cannot pretend to deal with the last part of the question within the scope of a Parliamentary answer.

Mr. FELL

As the purchases have continued on rather a larger scale than usual can the right hon. Gentleman give any explanation of the weakness of Consols, money being cheap?

Mr. HOBHOUSE

I think one very obvious reason is the enormous amount of Colonial stocks which are open as trustee security to investors.

Captain CRAIG

Has the Budget anything to do with it?

Mr. HOBHOUSE

Nothing at all.