§ 36. Colonel WEDGWOODasked the Chancellor of the Exchequer whether any part or all of the £10,000,000 gold recently bought by the Bank has been bought for the Exchange Equalisation Account and with his authority?
§ Colonel WEDGWOODMay I ask the right hon. Gentleman, in the first place, whether we are to understand that it will not be transferred as a debit to the Exchange Equalisation Account when that account is set up, and, secondly, whether any loss on this gold transaction will be debited to the British taxpayer or to the Bank?
Mr. CHAMBERLAINThe answer to the first question is "No." With regard to the second question, there is no loss.
§ Colonel WEDGWOODThat is the case at present, but there may be, if America goes off gold. May I ask one more question? Is the right hon. Gentleman responsible for these purchases, or is the Director of the Bank of England responsible?
Mr. CHAMBERLAINAs I stated, it is a question for the Issue Department, and, therefore, the responsibility is not mine, but lies on the Bank.
§ Colonel WEDGWOODAnd the loss?
§ 40. Mr. DAVID MASONasked the Chancellor of the Exchequer the loss which the Treasury has incurred as a result of the recent purchases of gold made by the Bank of England?
§ Mr. MASONAre not the Treasury bound to indemnify the Bank of England for the loss which they must make owing to their buying at a premium at the present time?
§ HON MEMBERS: Order!
2099§ Mr. SPEAKERThe reply was that there was no loss.