HC Deb 02 July 1935 vol 303 cc1691-2

asked the Chancellor of the Exchequer whether, having regard to the Treasury letter of the 7th February to the City Chamberlain of Glasgow with regard to their conversion loan, the Treasury was, in fact, consulted on the terms of the proposed Glasgow issue; and whether the Treasury did or did not consent to the terms proposed by the Bank of England?

The CHANCELLOR of the EXCHEQUER (Mr. Chamberlain)

The answer to the first part of the question is in the negative. The only interest of the Treasury in this matter arose from the fact that the proposed loan was an instance of the optional replacement of an existing issue by a new issue which would rank as a trustee security and involved an invitation to the public to subscribe new cash, and that, in the statements which I made on the 1st October, 1932, and the 13th January, 1933, I requested that, until further notice, such issues should not be made without my consent having been previously obtained. The Treasury letter of the 7th February related solely to this aspect of the matter, and had nothing to do with the terms of the proposed issue, for which Treasury assent was not necessary and was not sought.