§ 57. Mr. WISEasked the Chancellor of the Exchequer under what statutory powers the costs of the £50,000,000 credit obtained by the Bank of England in July for the support of the exchange are being borne by the taxpayer instead of by the Bank of England itself?
§ The FINANCIAL SECRETARY to the TREASURY (Major Elliot)This transaction was carried out by the Bank of England on behalf of the Issue Department and the costs therefore fall to be dealt with under Section 6 of the Currency and Bank Notes Act, 1928.
§ Mr. WISEIs it not the case that the effect of that answer is that the loss of those credits has to be borne by the Treasury, since the profits and losses of the Issue Department are met by the Treasury, and that the effect on the depreciation of the exchange will inevitably be a loss of £20,000,000 or £30,000,000 which is not allowed for in the Budget?
§ Major ELLIOTIf the hon. Member knows so much about this matter, why did he bother me by asking this question?
§ Mr. WISEIs not the hon. and gallant Member fully aware that the purpose of this question was to indicate to him and to the House that this transaction involves the country in a loss of £20,000,000 or £30,000,000 and will in itself unbalance the Budget?
§ Major ELLIOTThe hon. Member will surely realise that it is impossible to debate a matter such as that within the limits of a question.