§ Major O'NEILLasked the Chancellor of the Exchequer what will be the cost to the country of the increase of the rates on Treasury bills to 6½ per cent.; and what is the rate of interest now being paid on Ways and Means advances?
§ Mr. BALDWINThe cost of the increase in the Treasury Bill rate from 5½ per cent. to 6½ per cent. depends on the length of time for which the rate is56W in force. If there were no reduction in the total bills outstanding, and existing bills were all renewed for a year at 6½ per cent., the extra cost would be, approximately, £10,000,000. The maximum rate for Ways and Means advances is fixed by Act at 5 per cent.