§ 1. Mr. du Cannasked the Chancellor of the Exchequer whether he has observed the depressed state of present quotations of Government securities; and what action he proposes to take to remedy the situation.
§ The Economic Secretary to the Treasury (Mr. Nigel Birch)My right hon. Friend observes the fluctuations of the market but he is not prepared to forecast developments.
§ Mr. du CannWould my right hon. Friend agree that it is a very serious matter indeed when important institutional investors like the Church and Lloyd's change their traditional investment policies from investment in gilt-edged stocks to investment in equities in an endeavour to keep pace with the falling value of money since 1939? Does not he also agree that the small investor is becoming progressively disillusioned with investment in gilt-edged stocks, and that it will be very difficult to get the small investor back into the gilt-edged market? Has he observed the experience of the French Government—
§ Mr. SpeakerThe hon. Member is really making a speech on this important subject.
§ Mr. BirchThe only comment I would make is that I do not think it would be likely to stimulate investment in gilt-edged stocks if we were to force the rate of interest down artificially.
§ Mr. HoltAs the right hon. Gentleman has not answered the second part of this interesting Question, may I ask him whether he agrees that there is a situation which ought to be remedied and, if there is, what do the Government intend to do about it, because the right hon. Gentleman cannot deny that the Government can considerably influence this market?
Mr. BirthThe subject of monetary policy was dealt with at some length during the Budget debates both by my right hon. Friend the Chancellor of the Exchequer and myself.