§ 2. "That any amount may be raised by the Treasury under the War Loan Act, 1914, which is in their opinion required for the purpose of defraying the expenses of the present war, notwithstanding that the amount raised may exceed the Supply for the time being granted to His Majesty for the service of the year ending the thirty-first day of March, nineteen hundred and fifteen."—[Mr. Montagu.]
§ Motion made, and Question proposed, "That this House doth agree with the Committee in the said Resolution."
§ Sir F. BANBURYI should like some explanation of this Resolution. I have not had the opportunity of seeing it on the 677 Paper, and I think the words are not the words which were on the Paper. As far as I can gather it authorises the Government to spend money beyond that which has been granted by Parliament, and I think that is a strong order, even for the Government at the present time. I may have misunderstood the words, and I should like to have some explanation as to the necessity for this measure. I should also like to know whether this Resolution empowers the Government to spend money which has not been authorised by Parliament?
§ The FINANCIAL SECRETARY to the TREASURY (Mr. Montagu)This is a Resolution upon which it is proposed to found the Finance Bill to be introduced, and on this Resolution a Clause will be propounded in that Finance Bill. The Resolution enables the Treasury to raise a loan, but not to spend money in excess of that voted by Parliament, and the reason for the necessity of the Resolution is that, under the terms of the War Loan, the prospectus for which has just been issued, certain instalments are collected after the end of the financial year, and without this Resolution it would be impossible to arrange for that. We are taking power to raise a bigger loan, but we do not desire to spend more than the supply of this year.
§ Sir F. BANBURYAm I right in saying that the Government cannot raise a further loan beyond the amount of the War Loan without coming to the House of Commons for their sanction?
§ Mr. MONTAGUThe Government could raise a further loan, and when the hon. Baronet sees the Clause he will see the difficulty of passing a Clause which would limit the right of the Treasury to do this. If you put in a specific sum, there will be a difficulty in dealing with that in Ways and Means, and under the War Loans Act. There is the difficulty of stating now whether you propose, and when you propose, to repay the outstanding Bills, or whether you propose to renew them. All this makes our proposal desirable in the difficult circumstances of the case, when borrowing has to be undertaken at a moment suitable to the market, and it is very difficult to put figures in the Bill.
§ Sir F. BANBURYI will wait until I see the Clause.
§ Question put, and agreed to.
§ Resolutions reported,