HC Deb 10 December 1912 vol 45 cc226-7
8. Mr. RUPERT GWYNNE

asked on what day the Bank of England was first instructed by the India Office this year to purchase silver on their behalf; and if he will give a copy of the whole of the correspondence which has passed during 1912 between the India Office and the Bank of England relating to the purchase of silver?

Mr. H. BAKER

The date referred to was the 30th October. The whole of the correspondence of 1912, between the India Office and the Bank of England on the subject, will be included in the White Paper which has been promised in reply to the hon. Member's question of 4th December.

Mr. R. GWYNNE

As the hon. Member has admitted in this House that it was known in the market early in August that the Indian Government were buying silver, why were not future purchases from that date carried out through the Bank of England, instead of waiting until the transactions were exposed in this House?

Mr. H BAKER

I should like to have notice of that.

9. Mr. RUPERT GWYNNE

asked whether the whole of the cash balances of the Government of India shown in the Return given on 4th December were on loan during the months of April, May, June, July, and August of this year; if so, what was the average rate of interest received each month; and, if any of the balances were not on loan but were kept ready to meet the payments for silver purchased, will he say how much each month was lying unemployed?

Mr. H. BAKER

The whole of the cash balances referred to were on loan, except the standing balance, which, under an arrangement that has existed for many years, was at the Bank of England. The average rate of interest received was approximately £3.00 per cent, in April,]912, £2.49 per cent, m May, £2.66 per cent, in June, £2.59 per cent, in July, and £2.63 per cent, in August. No special balance was kept ready to meet payments for silver.

Mr. R. GWYNNE

Can the hon. Gentleman say how much the standing balance was?

Mr. H. BAKER

I must consult the Secretary of State before answering that.

10. Mr. RUPERT GWYNNE

asked what words are contained in the contract notes sent to the India Office by Messrs. Samuel Montagu and Company which indicate that they acted as brokers, and not as dealers; whether a different contract note is issued by them when they act as dealers; and, if so, will he give a specimen copy of both these different notes?

Mr. H. BAKER

When acting for the India Office, Messrs. Samuel Montagu and Company sent contract notes, showing that the silver was "bought for" or "sold for" the Secretary of State in Council, thus indicating that they acted as brokers. Specimens of "bought notes" were circulated with the Votes on 19th November and 2nd December, and I am to-day circulating a "bought note" and a "sold note." It has been ascertained that when the firm act as dealers the business is usually confirmed by letter without a contract note; but that, when a contract note is used, it shows that the silver is "bought from" or "sold to" the other party to the transaction. The form used in such cases is being circulated with the Votes.

Mr. R. GWYNNE

Will the hon. Gentleman say why the letter in which the Secretary of State assured me they acted as brokers, and not as dealers has not been circulated with the correspondence?

Mr. H. BAKER

I shall inquire. If the hon. Member is right he will see when he gets the White Paper.