HC Deb 23 May 1939 vol 347 cc2074-5
51. Mr. Craven-Ellis

asked the Chancellor of the Exchequer whether he can account for the rate of interest paid on Treasury bills which increased from just over 10s. per cent. at the beginning of last March to £1 11s. 2d. per cent., which is the highest rate since the beginning of the cheap money period in 1932; is he aware of the prejudicial influence of this change on the gilt-edged market and on the prospects of Government financing; and what he proposes to do in the matter?

Sir J. Simon

I would refer my hon. Friend to the reply which I gave to the hon. Member for Bassetlaw (Mr. Bellenger) on 16th May. The latest rate is 13s. 3½d

Mr. Craven-Ellis

Is the right hon. Gentleman satisfied that the higher rates which are demanded from time to time are in the interests of his policy of cheap money rates?

Sir J. Simon

There are a number of factors which enter into the question, and conditions very often vary from week to week. Like the hon. Member, I am very pleased when the rate comes down.

Sir F. Sanderson

Can the right hon. Gentleman assure the House that the policy of the Government is a cheap money policy?

Sir J. Simon

Yes, Sir.