§ 47. Major MILNERasked the Prime Minister whether he will inquire from the lenders as to the possibility of a modification of the special conditions of borrowing which have necessitated cuts in unemployment benefit, with a view to the abandonment of such cuts?
§ Mr. S. BALDWINI am unable to accept the implications contained in the hon. and gallant Member's question, to which the answer is in the negative.
§ Major MILNERAre we to understand that what the Prime Minister said on Monday last is not correct?
§ Mr. BALDWINI cannot answer for the contents of anyone's mind except my own. I would remind the lion and gallant Gentleman that two days ago the Chancellor of the Exchequer was asked, in precise terms, whether any conditions, political or economic, had been imposed, and he answered, "No," which seems to me comprehensive and to which I can add nothing.
§ Major MILNERWhat special conditions were laid down in respect of the credits which this country obtained, as stated by the Prime Minister?
§ Mr. BALDWINPerhaps the hon. and gallant Gentleman would be good enough to put that question down.
§ 57. Colonel WEDGWOODasked the Chancellor of the Exchequer whether any estimate can be given to the House as to the net charge likely to fall upon the taxpayer in repaying the credits which were used up in pegging or defending sterling; and how it is intended to meet this deficit?
§ The CHANCELLOR of the EXCHEQUER (Mr. Philip Snowden)Clearly no such estimate can be given at the present time. As the right hon. and gallant Member is well aware, there is no question of any real loss since the liabilities in gold currencies are fully covered by holdings in actual gold.
§ Colonel WEDGWOODAm I to understand that we need not repay the £80,000,000 credit in gold? I understood it was borrowed in sterling and was used for sterling and has to be repaid in francs and dollars.
§ Mr. SNOWDENI think I said the other day that the gold reserves at the bank are held against the possibility of having to redeem in gold.
§ 68. Lieut.-Commander KENWORTHYasked the Chancellor of the Exchequer whether any under-writing or over-riding commissions or other cash benefits accrued to the negotiating British bankers on the $200,000,000 loan raised in the United States of America and on the 2,500,000,000 francs raised in France?
§ Mr. SNOWDENThe answer is in the negative.
§ Lieut.-Commander KENWORTHYIs this to be taken as a precedent far further Government loans? Are there to be no more underwriting commissions?
§ Mr. SNOWDENIf it is necessary to have further Government borrowings, that matter, among others, will, no doubt, be taken into consideration.
§ Lieut.-Commander KENWORTHYIs the right hon. Gentleman aware that in the past very heavy commissions have been paid for Government loans?
§ Mr. SNOWDENI have nothing to add.
§ 63. Colonel WEDGWOODasked the Chancellor of the Exchequer whether his attention has been called to the desire of the French Government to lend us money to keep up the price of sterling; and will he see that any future credits to this country are made in sterling?
§ Mr. SNOWDENHis Majesty's Government warmly appreciate the desire expressed by the French Government to do everything in their power to assist in maintaining the stability of sterling. Circumstances were not such as to make it useful for His Majesty's Government to obtain a further credit in France. Clearly I could make no statement at present on the suggestion in the last part of the right hon. Gentleman's question.
§ Colonel WEDGWOODWill any future attempts to peg sterling be made on money borrowed in sterling and not on money borrowed in other currency?
§ Mr. SNOWDENThat is simply a repetition of the last part of the question. It is a hypothetical question, and I am not prepared to answer it.