HC Deb 28 July 1942 vol 382 c327
52. Mr. Craven-Ellis

asked the Chancellor of the Exchequer the total amount loaned by the Bank of England and the joint stock banks on short term in Treasury deposit receipts and Treasury bills; and what is the annual interest charge paid on these amounts?

Sir K. Wood

The total of Treasury deposit receipts outstanding on 25th July was £654,500,000, representing deposits by the Clearing and other Banks. Interest is payable at the rate of 1⅛ per cent. per annum. Treasury bills are transferable by delivery, and I cannot say what proportion of the total outstanding is held in any particular hands. The current rate of discount is approximately 1 per cent. per annum.

Mr. Craven-Ellis

Is it not time that this war was financed on a system which would be more beneficial to the people as a whole instead of to a small and privileged class?

Sir K. Wood

The system of financing this war gives many causes for satisfaction.

Mr. Craven-Ellis

I accept that, but I must ask my right hon. Friend again whether he does not think there is still room for improvement in order to ease the burden on the taxpayer?

Sir K. Wood

There is always room for improvement. I have read my hon. Friend's publications on this matter, and I will continue to study them.