§ 58. Sir Nicholas Grattan-Doyleasked the Chancellor of the Exchequer whether, in order to ease the gold difficulties, he will reduce further the paper cover held against the note issue, by replacing the;£200,000,000 of fiduciary paper with gold coin and bullion from the Exchange Equalisation Account until the whole of the note issue has been covered by gold at 85s. per ounce, pending revaluation?
§ Sir J. SimonIt is not necessary to consider this proposal at the present time.
§ 61. Mr. Mabaneasked the Chancellor of the Exchequer whether it is still the policy of His Majesty's Government to use the Exchange Equalisation Account solely to prevent short-term fluctuations in the exchange value of sterling, and not to maintain a fixed sterling value for gold?
§ 62. Sir John Mellorasked the Chancellor of the Exchequer whether the operations of the Exchange Equalisation Fund have been confined, and will be confined, to the purpose of correcting temporary fluctuations in the exchange value of sterling?
§ Sir J. SimonThe Exchange Equalisation Account is used for checking undue fluctuations in the exchange value of sterling and not for the purpose of maintaining a fixed sterling value for gold.
§ 63. Mr. Bellengerasked the Chancellor of the Exchequer whether the terms of the Tripartite Agreement preclude the United States Government from altering the parity price of gold without prior consultation with the Governments of Great Britain and France?
§ Sir J. SimonI would refer the hon. Member to the reply which my predecessor gave to my hon. Friend the Member for Aberdeen East (Mr. Boothby) on 13th April last.