§ 32. Mr. DAVID MASONasked the Chancellor of the Exchequer the loss on the recent purchases of gold by this country amounting to £50,000,000 at the now current price, calculated on the Gold Standard parity which prevailed prior to August, 1931?
§ The FINANCIAL SECRETARY to the TREASURY (Mr. Hore-Belisha)As my hon. Friend is aware, gold purchased by the Issue Department of the Bank of England is carried at its par value in sterling, the excess value being adjusted in the Exchange Equalisation Account. Details of the transactions on that account cannot be published. No question of profit or loss arises except in the event of a resale of the gold.
§ Mr. MASONIf there is no profit or loss does that mean repudiating obligations and not restoring the pound?
§ Mr. HORE-BELISHANo obligations have been or will be repudiated. If the gold is sold for more than it costs, there will be a profit. If it is sold for less than it costs, there will be a loss.
§ Mr. MASONWould the Financial Secretary tell us what he intends to do and what is the policy of the Government? 2570 Does he intend to restore the gold parity, which means a loss, or to repudiate? Will he answer that?