§ (1) The Treasury may borrow from any person, by the issue of Treasury Bills or otherwise, and the Bank of England and the Bank of Ireland may advance to the Treasury on the credit of the said sum, any sum or sums not exceeding in the whole five hundred million eight hundred and seventy-eight thousand and forty pounds.
§ (2) The date of payment of any Treasury Bills issued under this Section shall be a date not later than the thirty-first day of March one thousand nine hundred and nineteen, and Section six of the Treasury Bills Act, 1877 (which relates to the renewal of Bills), shall not apply with respect to those Bills.
§ (3) Any money borrowed otherwise than on Treasury Bills shall be repaid, with interest not exceeding five pounds per cent. per annum, out of the growing produce of the Consolidated Fund, at any period not later than the next succeeding quarter to that in which the money was borrowed.
§ (4) Any money borrowed under this section shall be placed to the credit of the account of the Exchequer, and shall form part of the said Consolidated Fund, and be available in any manner in which such Fund is available.
§ Motion made, and Question proposed, "That the Clause stand part of the Bill."
§ Mr. BOOTHI would like to ask if the Financial Secretary to the Treasury can throw a little light on Sub-section (3). I have been trying to understand it, and should like to know how it works out. It says "at any period not later than the next succeeding quarter." That, I suppose, means that there will be a portion of a quarter with the majority of these Bills.
§ Mr. BALDWIN (Joint Financial Secretary to the Treasury)Sub-section (3) relates to any borrowings that may be necessary from the National Debt Commissioners or from the banks. It is in common form, and is a useful power to have for raising amounts for short terms. The term, as the hon. Member will see, is very limited. Under Sub-section (2) Treasury 654 Bills may be raised, and they have to be paid off by the end of the financial year, so that if they be raised in the early part of the year, they have a longer currency than if raised in the latter part of the year. Sometimes it may be convenient to raise the money by Treasury Bills, and this alternative method is given whereby we can borrow from the National Debt Commissioners or the banks. There is, however, a strict limitation laid down, and Treasury Bills must be repaid within the time specified in the Sub-section.
§ Mr. BOOTHAm I to understand that when the money is wanted for a longer period than a broken quarter, the Treasury prefer the method of issuing Treasury Bills?
§ Mr. BALDWINCertainly.
§ Question put, and agreed to.
§ Clause 3 (Short Title) ordered to stand part of the Bill.
§ Bill reported, without Amendment; to be read the third time upon Monday next.