40. Mr. Craik Hendersonasked the Chancellor of the Exchequer whether, in connection with any new loans to be issued, he will consider the issue of a loan carrying a low rate of interest, and the right to participate in prize drawings?
§ The Chancellor of the Exchequer (Sir Kingsley Wood)No, Sir. It is not proposed to make an issue of this kind which I consider would raise controversy and weaken the force of the National Savings Campaign.
Mr. Craik HendersonWill my right hon. Friend bear in mind that the issue of such loans would appeal to a large body of the community who otherwise might not be interested in war loans?
§ Sir K. WoodThat might be so, but I am strongly advised that it would greatly weaken the efficacy of the National Savings Campaign.
41. Mr. Craik Hendersonasked the Chancellor of the Exchequer whether, in connection with any new loans to be issued, or certain of them, he will provide that such loans can be surrendered at par in payment of Death Duties?
§ Sir K. WoodNo, Sir. I do not think that it would be desirable to attach to any new loans the condition which my hon. Friend suggests.
Mr. Craik HendersonWill my right hon. Friend keep in mind that the effect would be to prevent forced realisation, a fall in value, and a loss to the Treasury?
§ Sir K. WoodI think the answer to my hon. Friend is that the objection in principle is to the one-sidedness of the proposal. The stock would in fact be used in payment of Death Duties only when it stood below par and the Exchequer would always be the loser.
§ Mr. MacLarenThat would happen in any case.
§ Mr. R. C. MorrisonHow much longer is the Treasury going to be the only Department that sticks rigidly to orthodox methods?
§ Sir K. WoodThat is another question.