HC Deb 06 April 1939 vol 345 cc2976-7
40. Mr. Craven-Ellis

asked the Chancellor of the Exchequer at what rate the Government were able to borrow on both long and short terms in the years 1932, 1935, 1937, and 1938; and further, is it the policy of the Government in the future to maintain cheap money rates?

The Chancellor of the Exchequer (Sir John Simon)

As the answer to the first part of the question contains a number of figures I will, with my hon. Friend's permission, circulate it in the OFFICIAL REPORT. In reply to the second part of the question, no change in policy is in contemplation.

Following is the answer to the first part of the question:

The yields (including redemption) on Government borrowings, other than Treasury Bills, during the years in question were as follow:

1932. £ s. d.
3 per cent. Treasury Bonds 1933–42 *3 9 11
2 per cent. Treasury Bonds 1935–38 2 0 0
3 per cent. Conversion Loan 1948–53 3 3 5
1935.
1 per cent. Treasury Bonds 1939–41 1 7 1
2½ per cent. Funding Loan 1956–61 2 13 2
1937.
2½ per cent. National Defence Bonds 1944–48 *2 10 6
1938.
3 per cent. National Defence Loan 1954 –58 3 2 4
* In these cases annual drawings were provided for and an average life has been assumed. In all other cases the yields are calculated to the latest redemption date.

The average rates of interest of Treasury Bills issued by tender in the years in question were as follow

s. d.
1932 … … … … 17 8
1935 … … … … 11 6
1937 … … … … 11 2
1938 … … … … 12 5