§ Mr. WILLIAM PEELasked the Chancellor of the Exchequer whether he is aware of the fact that in the ten years ending December, 1905, which years included the period of the Boer War, the yield of Consols rose by 4s. 7d., namely, from £2 11s. 5d. to £2 16s., while during the period commencing in December, 1905, and ending last month, the yield increased by 6s. 8d., namely, from £2 16s. to £3 2s. 8d.; and whether, under these circumstances, he is prepared to increase the sum devoted to the extinction of debt?
§ Mr. HOBHOUSEThe hon. Member has apparently ignored in his calculation of the yield in 1895 the effect of the prospective fall in the rate of interest in 1903. The average yield in the month of December, 1895, was in fact about £2 7s. 7d., and the increase of yield between that date and 31st December, 1905, about 8s. 5d.—not 4s. 7d. as stated in the question. Otherwise the figures given are approximately 867 correct. What bearing (if any) these figures may have upon the question whether it is desirable to increase the present provision for the redemption of debt is a matter which I cannot with advantage discuss within the limits of a reply to a Parliamentary question,
§ Mr. W. PEELIs the right hon. Gentleman prepared to take any steps to restore the national credit to what it was?
§ Mr. HOBHOUSEI may point out that between the dates covered by these questions the increase in Consol debt was £64,000,000. In the period that has elapsed since 1905 the decrease has been £23,000,000.
§ Sir F. BANBURYIs it not a fact that the increased yield was 4s. 7d. as stated in the question, remembering always that the interest is reduced from 2¾ to 2½ per cent., which has to be considered when a calculation is made?
§ Mr. HOBHOUSENo, I have already pointed out that the statement was inaccurate.