HC Deb 23 June 1960 vol 625 cc658-60
14. Mr. Jay

asked the Chancellor of the Exchequer what has been the percentage fall in the price of 3½ per cent. War Loan since October, 1951.

Mr. Amory

Thirty-one per cent.

Mr. Jay

Is it really in accordance with Government policy that these enormous losses should be inflicted on investors in this stock, many of whom are quite small? Will the Chancellor now tell us precisely what he hopes to achieve by this further rise in the Bank Rate, which must mean still lower gilt-edged prices?

Mr. Amory

I have already explained that my object is to ensure a continuing balance in the economy and a continuing stable price level. Those two objects, if achieved, are the very best service that can be rendered to holders of Government stocks.

Mr. Lipton

When is the Chancellor going to resign?

Mr. Amory

That is a different question.

Mr. C. Osborne

Surely the doubling of the special deposits by the banks must compel them to sell more gilt-edged stock. It must. The Midland Bank today is just on the verge of 30 per cent convertibility. The doubling of these special deposits must cause the gilt-edged market to go down still further. Is there no other way of protecting holders of trustee stocks?

Mr. Amory

My hon. Friend had better wait to see how it works out.

Mr. H. Wilson

On a point of order. I beg to give notice that even before this disastrous decision the Opposition had decided to approach the Government with a view to having an economic debate to discuss the seriously deteriorating economic situation. In that connection, as the result of this morning's decision the case for a debate is even stronger. Will the Chancellor use the interval between now and the date of that debate to reread the Radcliffe Report?

Mr. Speaker

Without the semblance of reproof to the right hon. Gentleman, I would point out that the time has come when I must appeal to all hon. Members not to usurp the time of the House at Question Time by giving verbal notices.