HC Deb 29 May 1919 vol 116 c1416
69. Mr. MACQUISTEN

asked the Chancellor of the Exchequer whether the costs of all gold-mining companies have greatly increased and the intrinsic value of gold also greatly increased, while the standard mint price is arbitrarily fixed at an artificially low price, namely, £3 17s. 6d., being at least £l below its selling price to industries, and that as a result of this low price production is greatly diminished and many mines are closing down; and whether he will approach the Allied nations to base a price fixed among them for gold more nearly approximating to its real value and the costs of production, and therefore stimulate production and reduce the world shortage of gold, and increase the gold reserve which is vital to our foreign trade?

Mr. CHAMBERLAIN

The Mint price of gold is £3 17s. 10½d. per oz. standard. The prices now being paid for the very limited supplies of gold at the moment available in London for the arts are not, I think, any indication of what would be the price in a free market. In any case, I can imagine nothing more mischievous to our foreign trade than tampering with the standard of value.

Mr. MACQUISTEN

Is the right hon. Gentleman aware that if a citizen wished to sell a sovereign for 25s. or 26s. he would be prosecuted and imprisoned for it, and will the Government persist in buying gold at much less than its market value, and should not the Government in this matter of purchasing gold try to be at least as honest as they try to make the citizens be in reference to the sale of silver?

Mr. CHAMBERLAIN

I do not propose to argue this with my hon. Friend in answer to a question. I can only differ from him.

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