HC Deb 27 November 1945 vol 416 cc1076-8
56. Mr. Ernest Davies

asked the Chancellor of the Exchequer whether he has any statement to make on his intentions regarding future Government borrowing.

Mr. Dalton

Yes, Sir. I propose to discontinue the sale of2½ per cent. National War Bonds, 1954–56, and 3 per cent. Savings Bonds, 1965–75, after Saturday, 15th December. For the present I do not propose to replace these by other issues.

I propose to repay the 2½ per cent. Conversion Loan, 1944–49, on 1st April, 1946, and tire 2½per cent. National War Bonds, 1945–47, on 1st July, 1946. Holders of either of these Loans will, however, be given the option of converting their holdings as on 1st April, 1946, into 1¾per cent. Exchequer Bonds, 1950, on the same terms as the existing issue of these Bonds, carrying a payment of six months' interest on 15th August, 1946. This offer will close on or before 25th February, 1946. Full particulars will be posted in clue course to the holders concerned. The present issue of 3 per cent. Defence Bonds will continue and the maximum holding for any one person will be raised from £1,500 to £2,000 as from 17th December, 1945.

I do not propose any change in the terms of Savings Certificates or in the rate of interest paid on deposits in the Post Office Savings Bank or in the Ordinary Departments of Trustee Savings Banks, but a limit will be imposed at an early date on the total deposits of any one person.

Mr. Davies

May I ask the right hon. Gentleman whether, in view of his welcome announcement of the reduction of the rate of interest, he envisages further financial controls, and, if so, when he proposes to institute them?

Mr. Dalton

We advance step by step in such matters. I think that the step taken today is beneficial from the point of view of reducing the burden of the debt and lowering the cost of borrowing. Other things may come later.

Mr. Gallacher

Is not the Chancellor of the Exchequer aware that it would be a very bad policy for a housewife to borrow money while she has resources in the house, and will he strip the parasites of all their wealth before he starts borrowing money from the pals of the parasites?