§ 36. Mr. Websterasked the Chancellor of the Exchequer whether, in view of the low current price of 3½ per cent. War Loan, he will establish a sinking fund similar to that established for 3½ per cent. Conversion Stock.
§ Mr. BarberNo, Sir. Not only is this form of redemption not provided for in the terms on which War Loan was issued, but would impose a fairly heavy annual change on the Exchequer without the likelihood of its having an appreciable effect on the market price of the stock in the near future.
§ Mr. WebsterWould my hon. Friend agree that this type of sinking fund, to re-purchase 1 per cent. of the stock in the open market in any year that the stock stood at a discount of 10 per cent., need not necessarily be a great expense to the taxpayer?
§ Mr. BarberI can only say that in his Question my hon. Friend referred to 3½ per cent. Conversion Stock. I think that if a sinking fund on the lines of the one used in that case were employed for 31 per cent. War Loan, the cost in the first year would amount to about £38 million.