§ 4. Mr. Stratton Millsasked the Chancellor of the Exchequer what steps he intends to take to support the gilt-edged market when the Trustee Investments Bill comes into effect.
§ Mr. Selwyn LloydIt is a well-established rule not to disclose the intentions of the authorities with respect to future official operations in the gilt-edged market.
§ Mr. Stratton MillsHas my right hon. and learned Friend any estimate of the amount of gilt-edged stocks which may be coming on to the market in the next few months as a result of trustee sales? Does he agree that it may be in the region of £300 million? If that is so, is it not probable that there will be a drop in the gilt-edged market of between 5 and 7 points? I appreciate the reasons why we cannot have a declaration of intent from my right hon. and learned Friend, but will he bear this point in mind in his instructions to the Government Broker?
§ Mr. LloydCertainly. I will maintain a close interest in the gilt-edged market. I do not think that the effects will be as great as my hon. Friend suggests.
Mr. H. WilsonThe Government sales of the steel industry's prior charges had a most distressing effect on the gilt-edged market. Has the Chancellor of the Exchequer yet had an opportunity of considering the proposal made by an eminent investment expert which I once asked him across the Floor of the House to consider? The suggestion was that the money which the Government received from the sale of the steel industry's prior charges should be used for the purpose of putting a floor into the gilt-edged market so that there would be no further falls.