§ 38. Mr. WISEasked the Chancellor of the Exchequer whether he is aware that the Bank Charter Act, 1844, and the Currency Act, 1928, require the Bank of England to separate its general banking business from the issue department and to allocate to the Treasury profits less any losses made by the issue department; that the obtaining and disposal of the £50,000,000 credit secured by the Bank of England in July last for exchange purposes was outside the specific functions allowed by the above Acts to the issue department and of the nature of general banking business; and whether, in these circumstances, he will require that the costs and losses arising from this transaction should be met by the Bank of England and not by the taxpayer?
§ Major ELLIOTI am, of course, aware of the provisions of the Acts referred to in the first part of the question. I cannot accept the suggestion that the operation was of the nature of general banking business, as it was directly designed to conserve the gold reserves of the country which are concentrated in the issue department of the Bank. In these circumstances any loss or profit arising properly falls to be dealt with in the manner laid down in Section 6 of the Currency and Bank Notes Act, 1928.
§ Mr. WISECan the hon. and gallant Gentleman point to any statutory or legal authority for putting on the issue department functions which are not already accorded to it by Statute, and by that means putting on the taxpayer losses that arise out of a banking transaction?
§ Major ELLIOTThe hon. Member knows that he is raising this question on the Adjournment to-night. It will be more easily discussed then than by way of question and answer now.
§ Mr. WISEMay I put another question which is very relevant to the discussion, namely, whether the permission or authority of the Comptroller and Auditor-General, an officer of this House appointed to prevent charges which are not authorised by Statute being put on the taxpayer, has been received, or whether the advice of the Law Officers has been attained?
§ Major ELLIOTI really am entitled to ask for notice of a question like that.