HC Deb 10 October 1916 vol 86 cc17-8

(by Private Notice): I beg to ask the Chancellor of the Exchequer whether the issue of 6 per cent. Exchequer Bonds may be taken as an indication that the future policy of the Government is tot finance the War by short-date borrowing, or whether a long-term loan in respect of which the conversion rights attaching to the 4½ per cent. War Loan and 5 and 6 per cent. Exchequer Bonds can be exercised will be issued at an early date?


The decision to issue 6 per cent. Exchequer Bonds was taken because the moment did not appear to be the most favourable one for the issue of a long-date loan. I cannot, of course, give any definite pledge to issue such a loan at any particular date, but it is my intention to recommend such an issue to Parliament at the first suitable opportunity.


Is the right hon. Gentleman considering the question of a forced loan at a reasonable rate of interest, so that the State cannot be blackmailed by the moneylenders?


I should like to have a definition of the term "forced loan" before I answer that.