§ Sir J. POWERasked the Chancellor of the Exchequer how the ratio of gold now held by the Bank of England against the net amount of bank notes and Treasury notes in circulation compares 396W with the amount held by the Bank or the Treasury against the net issue on the date on which the gold holding of the Treasury was exchanged for bank notes; and whether he can make any statement as to when it is proposed to amalgamate the note issues?
Mr. SAMUELThe ratio of the gold held to the net total of the two note issues rose from 37.5 per cent. on the 22nd April, 1925, to 38.3 per cent. on the 14th March, 1928. If the calculation is confined to notes in active circulation, that is, if the notes in the Banking Department of the Bank of England are excluded, the figures on the respective dates were 40.1 per cent. and 42.7 per cent. As regards the last part of the question, I would refer my hon. Friend to the reply given to the hon. and gallant Member for Montrose (Sir R. Hutchison) on the 17th November last.