§ 48. Mr. John Wilmotasked the Chancellor of the Exchequer by what amount has expenditure by way of interest on Treasury bills, since the outbreak of war, exceeded the corresponding expenditure in the corresponding period of the previous financial year; and how much of 1140 the increase is attributable to higher interest rates and the increased size of the total issue, respectively?
§ The Chancellor of the Exchequer (Sir John Simon)For Treasury bills issued by weekly tender, the cost of interest in the period since the outbreak of the war to the 17th February, 1940, was £4,130,000 greater than in the corresponding period last year. The increased issue of bills is of course one of the factors affecting the rate; if that consideration be ignored £3,134,000 of the increase may be regarded as attributable to higher interest rates and £996,000 to the greater volume of bills.
§ Mr. WilmotDoes the Chancellor of the Exchequer appreciate that this really amounts to profiteering by the banks under war conditions, and will he take steps to stop it?
§ Sir J. SimonIf the hon. Member will look at the records he will see that that really is not so.