§ Sir W. Smithersasked the Chancellor of the Exchequer why the National Debt Commissioners took up about 77 per cent. of the Birmingham Loan last July; what is the loss incurred by the taxpayer; who fixed the terms of the issue; and what amount the commissioners still hold.
§ Mr. DaltonI cannot undertake, as a general rule, to answer Questions on current financial operations of the National Debt Office. The terms of this Birmingham Loan, as of other municipal loans, were agreed with the Bank of England. Under the usual arrangements made by the Treasury the National Debt Office took up that part of the loan not taken up by private investors, without charging underwriters' commission. I am glad to say that they have now unloaded all they took up, at a profit to the taxpayer, and that the City of Birmingham is borrowing at a cheaper rate than at any time in this century.