§ 46. Mr. WADDINGTONasked the Prime Minister whether, having regard to the additions to the National Debt caused by the issue of conversion stock at a discount by the Treasury, he will 1575 consider repealing Section 47 of the Finance Act, 1921, and restore to Parliament the same control over the exchange and issue of securities which it possessed in pre-War days?
§ The CHANCELLOR of the EXCHEQUER (Mr. Churchill)No, Sir. I think such a course would be quite impracticable in present conditions.
§ Mr. WADDINGTONHas my right hon. Friend considered whether the policy of the Treasury is not imposing serious disadvantages upon Parliament in making future conversions when money rates are easy?
§ Mr. CHURCHILLThat is a large question, and I shall be prepared to debate it on any suitable occasion, but I am quite-certain that it would be impossible to carry out the great and numerous conversion operations which are inseparable from the post-War period if every one of them had to be passed through this House by legislation.
§ Sir F. WISEDoes my right hon. Friend realise that the same procedure was carried out after the Napoleonic Wars, when the amounts were just as big in proportion to the wealth of the country?
§ Mr. CHURCHILLAt any rate, for many years before the recent War, when the procedure that my hon. Friend wishes us to bring in was in operation, conversion took place scarcely more than once in a generation, which is a very different thing from the position that we have to face now.
§ Sir F. WISEDoes my right hon. Friend realise that after the Napoleonic Wars there was a great number of conversions, up to the Goschen conversion of 1888?
§ Mr. CHURCHILLI am quite clear that it is utterly impossible for us to attempt to deal with these matters by legislation in every case at the present time, and I am not aware, except from one or two questions from my hon. Friend, that any case has been deployed against the policy the Government are pursuing. If he can advance such a case, I shall be very glad to give it consideration.
§ Mr. MONTAGUEIs the Chancellor of the Exchequer aware of the fact that, after the Napoleonic Wars, the amount of taxation in this country was lower in proportion to the wealth of the country?
§ Mr. CHURCHILLI must plead guilty to not having specially looked up what happened as regards conversions after the Napoleonic Wars. I am more concerned with what is happening after the last Great War.
§ 54. Mr. WADDINGTONasked the Chancellor of the Exchequer the amount of 3½ per cent. Conversion Loan redeemed under the operation of the 2 per cent. per annum Sinking Fund and the actual cash paid for the redemption of such stock from. 1921 to 31st January, 1927?
§ Mr. CHURCHILLThe Sinking Fund is 1 per cent. of the stock outstanding at the end of any half year, as long as the price is below 90. Between 1st April, 1922, and 31st January, 1927, £79,836,586 of the stock was redeemed, the cash paid being £61,239,336.
Mr. JOHNSONBas the right hon. Gentleman considered the effect upon his Conversion Loan of the present unrestricted export of British capital, and especially the £3,000,000 to Poland announced in to-day's Press?
§ Mr. SPEAKERThat does not arise here.
§ Mr. CHURCHILLIt would be all right if it went to Russia.