HC Deb 25 April 1940 vol 360 cc367-8
62. Mr. Benson

asked the Chancellor of the Exchequer whether, in view of the fact that last week the city of Bristol borrowed £500,000 on six months' bills, and that the average rate of discount was 2d. per cent. less than for that week's three months' Treasury bills, he proposes to use his powers to reduce the Treasury bill rate to its pre-war level?

The Chancellor of the Exchequer (Sir John Simon)

The Bristol rate was in fact not 2d. but a little over ½d. below the average rate for Treasury bills tendered for the next day. Tenders were accepted for an amount of Treasury bills which was 100 times as large as that of the issue by the city of Bristol, and it is clear from the published results that rather under a half of the tenders for Treasury bills accepted were at a rate nearly 2d. less than the average Bristol rate. In reply to the last part of the Question, I have reminded the House on previous occasions that the rates at which Treasury bills are issued is the result of competitive public tender.

Mr. Benson

While thanking the right hon. Gentleman for his reply, may I point out that I asked him whether he proposed to use his powers, and he very carefully evaded that question? Is he satisfied that a local authority can issue six months' bills at a lower rate than the Treasury issue three months' bills and is he aware that the tenders were six times oversubscribed?

Mr. Stokes

Is not the Chancellor of the Exchequer aware that the Treasury bills discount is hooked by a discount syndicate in the City and there is no free market at all?

Sir J. Simon

The hon. Member does not put a question, but makes that assertion to me at intervals in this House. I have heard what he said, but I am afraid I still adhere to what I said in my reply.

Mr. Stokes

If I provide the Chancellor of the Exchequer with information, will he look into it?