§ 23. Mr. Ian Lloydasked the Chancellor of the Exchequer what increase in the fiduciary issue Her Majesty's Government propose to make in 1968, 1969 and 1970.
§ Mr. Harold LeverThe size of the fiduciary issue will continue to be determined by public demand for notes.
§ Mr. LloydThat statement of the Financial Secretary's intentions is hardly informative. May I ask him whether he can tell the House what proposals he has for controlling money supplies since, if the Government had specific proposals, there need not be this vast bureaucratic attempt to control prices and incomes indirectly? It would largely be unnecessary.
§ Mr. LeverThe Question related to the fiduciary issue, which is only a small fraction of the money supplied. To answer the hon. Gentleman's question would not only go wide of the original Question, but would take up a considerable time of the House.
Mr. Gresham CookeIs the Financial Secretary aware that this increase in the fiduciary issue and the increase in Treasury Bills that is going on by means of the self-financing of the Government is leading to inflation and is drawing imports from abroad, damaging the economy?
§ Mr. LeverThe increase in the fiduciary issue merely represents the amount of cash that the public desires to have in its pockets and tills. To reduce the amount of cash would do nothing whatever, either to reduce the total money supply, or the inflationary pressure in our economy. All that would result would be inconvenience to our people, and another stale argument would be removed from members of the Opposition.