§ 49. Mr. Craven-Ellis
asked the Chancellor of the Exchequer whether he is satisfied with the profit for the year ended 31st August, 1942, of £8,228,259 10s. 3d. arising out of the gross interest paid by the Government to the issue department of the Bank of England on the £880,000,000 securities acquired by them as backing for the total note issue; and are the deductions from the gross income, 1493 which are made in arriving at the profit stated above, made strictly in accordance with the terms of the Bank Charter Act, 1844, which took the power from the banks to make their own issue of notes?
§ Sir K. Wood
The answer to the first part of the Question is in the affirmative. In reply to the second part, the ascertainment of the profits of the Issue Department is regulated, not by the Bank Charter Act, 1844, but by the Currency and Bank Notes Act, 1928, the terms of which are fully observed.
§ Mr. Craven-Ellis
So that we may be satisfied as to whether this is a reasonable profit or not, will my right hon. Friend state the total amount of gross interest received by the Bank of England on the total securities of the fiduciary note issue?