§ 46. Mr. MABANEasked the Chancellor of the Exchequer under what statutory authority the Treasury acts in compelling the Bank of England to make ways and means advances to the Government or to accept repayment of money so borrowed?
Mr. CHAMBERLAINMy hon. Friend is mistaken in supposing that the Treasury has power to compel the Bank of England to lend money to the Government. Statutory authority is required to enable the Treasury to borrow from the Bank of England and for the Bank of England to lend to the Treasury. Such authority is given by Consolidated Fund and Appropriation Acts from time to time. One condition invariably imposed by Parliament is that borrowing in the form of ways and means advances must be repaid not later than the next succeeding quarter to that in which the money was borrowed.