§ 51. Commander Locker-Lampsonasked the Chancellor of the Exchequer what steps he will take to meet the position arising from the action of the Stock Exchange upon the outbreak of war, when it decreed that all balances carried over were to be liquidated forthwith, and fixed the prices of securities at a lower figure than the carry-over, thus forcing clients to realise securities at a loss?
§ Sir J. SimonAccording to the information before me I think that my hon. and gallant Friend must have been misinformed on this matter. By agreement with the Government the Stock Exchange was closed from 1st September until 7th September. The Stock Exchange Committee, therefore, postponed the settlement due on 7th September until the next settlement fixed for 21st September. They also introduced temporary rules and regulations providing for the transaction of 1206 business on a cash basis and prohibiting continuations except in connection with existing continuations already arranged. The only securities for which minimum prices have been fixed by the committee are those in the gilt-edged market, dealings in which are always for cash settlement and are not the subject of continuation arrangements.