62. Mr. De la Bèreasked the Chancellor of the Exchequer whether he will take steps to ensure that, as from 30th June, 1941, the existing privileges of an option by the banks to convert the Treasury deposit receipts of 1⅛ per cent, into permanent long term loans at 2½ or 3 per cent. should be withdrawn, in view of the high cost which has to be borne by taxpayers throughout the country?
§ The Financial Secretary to the Treasury (Captain Crookshank)No, Sir. It is in the national interests that part of this short-term debt should be converted into long-term debt, and my right hon. Friend sees no reason to make any change in the existing arrangements.
Mr. De la BèreCan the right hon. and Gallant Gentleman tell us whether there could be any limitation on the amount of Treasury deposit receipts which may be issued? I she not aware of the danger of inflation arising if no limitation is placed on that amount?
§ Sir I. AlberyHas the right hon. and gallant Gentleman received representa- 854 tions from the banks that the amount of deposits should be limited on financial grounds, and that they would prefer a larger issue of Treasury bills?
§ Captain CrookshankI cannot say that, because to-day I am only answering on behalf of my right hon. Friend. Perhaps the hon. Gentleman will put that question down.