§ Mr. Greenwood (by Private Notice)asked the Chancellor of the Exchequer whether he has any statement to make-about the gold held in the Issue Department of the Bank of England?
§ The Chancellor of the Exchequer (Sir John Simon)Yes, Sir.The House already knows that, in order to strengthen our financial resources abroad, powers have been taken to place private holdings of gold, foreign exchange and foreign securities at the disposal of the Government. As a further measure to the same end, and with a view to concentrating all the Government's foreign resources in one reserve, the Treasury and the Bank of England have agreed that, except as regards a nominal amount, the whole of the gold now held in the Issue Department should be transferred to the Exchange Account as now constituted under the Currency (Defence) Act 1939. Gold to the value of approximately 280,000,000 will accordingly be so transferred to-day. This transfer will entail an increase in the fiduciary note issue of the Bank to 580,000,000 and a Treasury Minute authorising such an increase will be laid before Parliament.