§ 58. Mr. PETHICK-LAWRENCE
asked the Chancellor of the Exchequer whether he proposes to make any change in the present system of note issue and whether such change will require legislation?
§ 67. Sir WILLIAM LANE-MITCHELL
asked the Chancellor of the Exchequer if any decision has been arrived at to transfer the issue of Treasury notes to the Bank of England?
§ Mr. CHURCHILL
I will answer these questions together. As I stated in the Budget speech last year, His Majesty's Government have accepted in principle the recommendations for the transfer of the currency note issue to the Bank of England made in the concluding paragraphs of the Report of the Currency Committee (Command Paper 2393 of 1925), to which I would refer the hon. Members. The change would require legislation; and could not, in any case, take place for some time to come.
§ Mr. DENNIS HERBERT
Whenever this change takes place, will the right hon. Gentleman take into consideration the very great experience and excellent work in the printing of the present Treasury notes, and try to see if economy cannot be served by preserving that method of printing?
§ Mr. PETHICK-LAWRENCE
Will the Chancellor of the Exchequer bear in mind the risk that any revival of trade, if and when it begins, may be frustrated if too rigid a limit be put upon the currency?
§ Mr. H. WILLIAMS
May I ask whether, when the transfer takes place, steps will be taken to secure the continued receipt by the State of the profits obtained from the securities held against the fiduciary issue?
§ Mr. CHURCHILL
This matter cannot possibly reach maturity for some time to come, possibly for a long time to come, and when it does, it will require legislation, and that will be the moment to take all these matters into careful consideration.