HC Deb 02 July 1957 vol 572 cc861-2
5. Mr. H. Wilson

asked the Chancellor of the Exchequer if he will make a statement about the present position resulting from Government policies in the gilt-edged market.

21. Mr. Page

asked the Chancellor of the Exchequer what action he proposes to take to arrest the decline in British Government securities in view of the adverse effect of the continued fall on the sterling area.

Mr. P. Thorneycroft

I have nothing to add to the reply given to my hon. Friend the Member for Taunton (Mr. du Cann) on 30th May.

Mr. Wilson

But has not the right hon. Gentleman seen a statement in, I think, the Financial Times that British Government credit now is lower than at any time for 140 or 150 years? Is the right hon. Gentleman further aware that it has been authoritatively stated elsewhere that something like three-quarters of the transactions of the gilt-edged market are merely tax fiddles arising out of cum-and ex-dividend dealings? In view of this, will the Chancellor look at the whole question again and not put off a decision until the receipt of the Radcliffe Report, perhaps two years hence?

Mr. Thorneycroft

I have read a great many comments in the Financial Times and other newspapers about the gilt-edged market, but it is only one factor in our economic position, and I do not think it would be helpful if I began to forecast movements in that market.

Mr. Page

Would my right hon. Friend say if the attack on the liquid reserves of the banks, as suggested by the right hon. Member for Huyton (Mr. H. Wilson) and The Times today, has any relevance at all to the situation?

Mr. Thorneycroft

That is a matter for the right hon. Gentleman.

Mr. Jay

Is the Chancellor really indifferent to a situation in which Government credit stands lower in the City than at any time in living memory?

Mr. Thorneycroft

I do not say that I am indifferent to any of the many factors in the economic situation, but my reply to the Question was that I do not think it really helps matters for any Chancellor to start forecasting events in the gilt-edged market.