§ 72. Mr. HOUSTONasked the Chancellor of the Exchequer whether he is aware of the heavy discount at which Government securities are now standing, notably War Loan, Funding Loan, and Victory Bonds; whether he is aware that when these loans and bonds were issued the public were assured that they were the finest securities in the world, and strong appeals were made that everyone should invest the whole of their available moneys, even to the extent of borrowing to invest in these securities; whether he is aware that many companies, firms, and individuals have invested large amounts of their available cash, including capital and reserves, and in some instances actually borrowed money for the purpose of investing in these securities, and that these reserves and capital are in many instances now required for business purposes; that War Loan and Bonds have 2237 consequently in many cases been sold at a great discount, inflicting heavy losses; whether the Treasury refuses to accept payment of taxes other than Excess Profit Duty in War Loan and Bonds and insists upon payment in cash, which necessitates the sale of these securities at a heavy loss; whether he is aware of the widespread discontent amongst all classes who have invested in these securities and who have had to realise them at a loss; and whether he proposes to take any action to improve the price of these Government securities?
Mr. CHAMBERLAINYes, Sir. I am fully aware of the facts relating to Government securities and I have taken all the steps within my power to improve the National credit. If the House will support me, and in particular if it will support the new taxation proposed with the special object of paying off debt, I do not doubt that those steps will within a reasonable time prove successful.
§ Mr. HOUSTONIs the right hon. Gentleman aware that in nearly every case industrial and commercial securities have greatly increased in value, while Government securities have greatly depreciated, the War Loan to the extent of 12 points discount. Is the right hon. Gentleman aware that, in consequence thereof, the public are not likely to re spond to further invitations from the Government for money, unless the issue price of these securities approximates their market value, and—
§ Mr. SPEAKERThat is a matter for discussion on the Second Reading of the Finance Bill.