55. Colonel NEWMANasked the Chancellor of the Exchequer whether he is aware of the shrinkage of capital sustained by a large section of the population who obeyed the Government's appeals to transfer their investments from private and public companies to Government loans, and who have suffered loss as a reward for their patriotism; arid if he will say what action he proposes to take?
Mr. CHAMBERLAINGovernment securities cannot be exempt from temporary fluctuations of market value, which also affect securities generally. It can hardly be regarded as surprising that during the early stages of reconstruction 251 the demands for money and the consequent high interest rates which borrowers are willing to pay should reflect themselves in a fall in the market quotations of stocks and bonds with a fixed yield.
§ Mr. HOUSTONWill the Treasury or any other Government Department accept payment in these bonds at their face value?