§ 4. Mr. Croninasked the Chancellor of the Exchequer the approximate sum by which the outstanding amount of Treasury Bills issued through weekly tenders has been reduced since the beginning of the year.
§ Mr. CroninHas not this result been achieved by the Government's rather clumsy open market operations which have brought about the depressed state of Government securities referred to by the hon. Member for Taunton (Mr. du Cann)? is not it a fact that the Government have to flood the market again with Treasury Bills to finance the Budget deficit and further funding operations?
§ Mr. BirchThe main reason for the fall in Treasury Bills is one which occurs every year—the revenue coming in.
Mr. H. WilsonYes, but is the right hon. Gentleman aware that we are now past the flush period for the revenue, and that the explanation for the fall is clearly that stated by my hon. Friend? In view of the disastrous fall in the Government's credit and— I do not mean only in terms of by-elections but in the price of gilt-edged securities as well— will the right hon. Gentleman bear in mind a subject which has been much commented on this week, the effect of all this on confidence in sterling?
§ Mr. BirchThe policy of forcing down the rate of interest has been tried in the past with rather disastrous results.
§ Mr. NabarroWhat was the position with "Daltons"?