§ Sir N. Grattan-Doyleasked the Chancellor of the Exchequer whether he will consider the advisability of arranging for the fiduciary issue of the Bank of England to be raised by approximately the amount 1974W of the reduction made last year; and, in so doing, strengthen the present gold holding of the Exchange Equalisation Fund?
§ Sir J. SimonThe reduction of the fiduciary issue from the statutory figure of £260 millions to £200 millions, to which I assume my hon. Friend is referring, took place on the 15th December, 1936. It coincided with an increase of £65 millions in the gold held in the Issue Department of the Bank of England and the whole transaction was described as a temporary and flexible arrangement. As such it has been and is constantly under review, and my hon. Friend can thus rest assured that the question of its revision will not be overlooked.