§ 114. Mr. KINGasked the Chancellor of the Exchequer whether he is aware of the apprehension felt that the price and value of Consols has been, or will eventually be, greatly depreciated by the issue of the War Loan and by other actions of the Government; and whether steps are in contemplation to mitigate the effects of a heavy and lasting depreciation of the Consol market?
§ Mr. MONTAGUDepression in the prices of the public securities of a belligerent country is the inevitable result of extensive borrowing to meet war expenditure. This must be regarded as one of the risks accepted by the investor in such securities. The special steps taken by the Government in connection with the crisis have been largely concerned with preventing the forced realisation of securities and thus have directly tended to the maintenance of prices. It would be quite impossible in view of the calls upon the 1321 country for the prosecution of the War to give uncovenanted benefits to the holders of Consols with a view to maintaining artificially the price of that security, even if such a course could be adopted consistently with justice to the taxpayer.