HC Deb 26 October 1916 vol 86 cc1310-1
132. Mr. D. MASON

asked the Chancellor of the Exchequer whether he will inform the House what is the character of the Government securities held in the Currency Note Redemption Account and what becomes of the interest on such securities; and is any of it credited to the Investments Reserve Account of the currency note issue?

Mr. McKENNA

The Government securities consist for the most part of Ways and Means advances to the Exchequer (at call) and of Treasury Bills. The balance consists of 4½per Cent. War Loan. Under the arrangements set out in Treasury Minute of 3rd May, 1915, which was presented to Parliament (Cd. 7918) the whole of the interest received up to date has been credited to the Investments Reserve Account.

Mr. MASON

Arising out of that reply, and in view of the statement the other day by the President of the Board of Trade that one of the causes of the rise in the prices of commodities was the inflation of the currency, may I ask what steps the Chancellor of the Exchequer now proposes to take?

Mr. McKENNA

I have inquired of the President of the Board of Trade, and he made no such statement.

An HON. MEMBER

Oh, yes, he did!

Mr. McKENNA

He stated that the inflation of the currency was all the world over.