§ 58. Mr. Stokesasked the Chancellor of the Exchequer whether, in view of the fact that he can borrow at the rate of 1 per cent. savings deposited by the public in their banks, he will, in the national interest, consider reducing the present rate of 3 per cent. War Loan?
§ Sir K. WoodThe 3 per cent. War Loan cannot be redeemed by the Treasury before 15th October, 1955, and no question of reducing the stipulated rate of interest at the present time can therefore arise. My hon. Friend has I think, failed to take into account the difference; between the rate of interest on short money and that on a 15 to 19 years' loan.
§ Mr. StokesIn view of the fact that in any case the interest has to be provided by the workers as a whole, will he see to it that future War Loans are issued at a lower rate?
§ Sir K. WoodI am afraid that the hon. Gentleman's suggestion would be a repudiation of contract on the first War Loan.