§ 39. Sir Nicholas Grattan-Doyleasked the Chancellor of the Exchequer whether, 422 as every paper pound is now covered by 22s. worth of gold, and in order to avoid moving gold-holdings between the Exchange Equalisation Fund and the currency issue, and also to absorb gold in excess of reserve requirements, he will coin golden token half-sovereigns as substitutes for paper ins. notes and as a supplement to 10 silver token shillings, and thus sterilize inflation of commodity prices induced by over-production of gold and suggest a similar correction in relation to the United States of America paper dollar?
§ The Chancellor of the Exchequer (Mr. Chamberlain)I have considered my hon. Friend's suggestion, but I do not think that it would serve any useful purpose at the present time.
§ Sir N. Grattan-DoyleIs the right hon. Gentleman aware that there is a considerable amount of surplus gold, and is he content to allow present conditions to drift?
§ Mr. ChamberlainI think the suggestion which my hon. Friend makes would not help, because, seeing that the notes are covered to the extent of 100 per cent., it does not make any difference whether the central authority issues notes and holds gold against them or cancels the notes and issues the gold.
§ Mr. ThorneDoes the right hon. Gentleman think it advisable to wind up the Equalisation Fund in the near future?
§ Mr. ChamberlainNo, Sir.