§ 12. Mr. P. Browneasked the Chancellor of the Exchequer if he will now give urgent consideration to the possibility of redeeming 3½ per cent. War Loan at par, where the stock was bought before 1948, in view of the recent heavy selling of this stock and the lack of support from the Bank of England.
Mr. AmoryTo discriminate between owners of this stock, whether according to the length of the time they have held it or in any other way would be tantamount to a breach in the terms of issue. Further, to redeem it at par at the present time would be to impose a heavy and entirely uncovenanted commitment on the taxpayer.
According to reports which I have received, no substantial selling of this particular stock has been apparent on the London Stock Exchange in recent weeks.
§ Mr. BrowneDoes my right hon. Friend's Answer mean that there is no hope for those people who, for patriotic reasons, invested in this stock during the war and have seen their capital being whittled away? Does he realise that most of them are small investors?
Mr. AmoryMy hon. Friend will remember that in 1932 there was an offer of repayment, and this stock has stood above par since then. My reply means that it is extremely difficult to contemplate altering the terms of an issue of stock after it has once been made.
§ Mr. FletcherMay we take it that the Chancellor does not exclude the possibility of announcing some future date at which War Loan will be redeemed?
Mr. AmoryI think that I must leave the Answer as I have given it today without adding any further to it.