§ 39. Mr. LAMBERTasked the Chancellor of the Exchequer if any moneys of the Exchange Equalisation Account have been used to increase the stock of gold held by the Bank of England?
§ 41. Colonel WEDGWOODasked the Financial Secretary to the Treasury whether the Exchange Equalisation Account is or will be used for the purchase of silver; and to what extent, if at all, it has been used for the purchase of gold?
§ The FINANCIAL SECRETARY to the TREASURY (Major Elliot); The Exchange Equalisation Account has been established since last Friday and the Treasury have placed to the credit of the Account the sum of £150 millions authorised by section 24 of the Finance Act, 1932. My hon. Friend will understand that this is an accounting transaction, the sum being held in sterling and re-lent to the Exchequer unless and until required for any other purpose of the Account. My right hon. Friend cannot undertake to give detailed information as to the operations of the Account, but in reply to the right hon. and gallant Member for Newcastle-under-Lyme (Colonel Wedgwood) I would point out that the purchase of silver would be contrary to Section 24 (3) of the Finance Act.
§ Mr. LAMBERTIs the Exchange Equalisation Account under the control of the Treasury or the Bank of England?
§ Major ELLIOTIt is under the control of the Treasury, as laid down in the Finance Act.
§ Colonel WEDGWOODDo I understand that we cannot be told whether there has been any gold bought as yet, or not?
§ Major ELLIOTI am afraid that is so.
§ Colonel WEDGWOODThen how are we to assist His Majesty's Ministers in watching and controlling this particular fund?