HC Deb 23 October 1956 vol 558 cc458-9
6. Mr. H. Wilson

asked the Chancellor of the Exchequer whether he will now reintroduce the system of Treasury deposit receipts.

Mr. H. Macmillan

No, Sir. I have, of course, examined this possibility, but I have decided against it.

Mr. Wilson

Without in any way endorsing what we consider to be the over-reliance of the Government on monetary methods, I would ask the Chancellor whether he is aware that, as is widely recognised in the City and in the great debate which has taken place in the financial journals recently, there is great concern about the operation of these financial controls, and does he not think that, in relation to the liquidity argument, something should be done to sterilise some of the excess liquidity, perferably by Treasury deposit receipts?

Mr. Macmillan

I was asked the Question, and I have done my best to answer it. I do not think this method would be suitable. First of all, it was used during the very different conditions of war, and they are really very different from those of peace ; also, it is specially bound up with a period of deficit financing, and we have exactly the opposite now.