§ 45. Mr. Osborneasked the Chancellor of the Exchequer if he is aware that 2½ per cent. Consols have fallen from 99 per cent. to 91 per cent. during the year; whether Treasury support to the gilt-edged market is being withdrawn; and how much further the Government is prepared to allow the gilt-edged market to slide.
§ The Chancellor of the Exchequer (Mr. Dalton)I keep myself informed of these ups and downs, but, as I have said before, it would be contrary both to long established precedent and to the national interest that I should make public statements on the matters raised in the second and third parts of this Question.
§ Mr. OsborneIn view of the warning given by the City Editor of "The Times" last Thursday that the gilt-edged market may go lower, may I ask the Chancellor whether it is his policy to maintain or to discontinue his cheap money policy?
§ Mr. DaltonThe hon. Member had better re-read my Budget speech. As a matter of historical interest, when this Government took office Consols were down to 82, and between the wars, under a Conservative Government, in December, 1920, they were as low as 43.
§ Sir Frank SandersonCan the Chancellor state whether taking the long view, his policy remains unaltered, namely, to continue a cheap money policy?
§ Mr. DaltonYes, Sir.
§ Mr. OsborneWhy could not I have had that question answered?