§ Mr. MacVEAGHasked the Chancellor of the Exchequer whether he can state what amount of money has been advanced by the Bank of England under the Treasury scheme for Stock Exchange loans, and what proportion of the amount has been lent on speculative counters; whether he is aware that the Bank of England put a new clause into the agreement for loans, making loans repayable in case of the failure to pay interest instead of only in case of bankruptcy, as provided by the scheme; whether it was intended that Stock Exchange loans should be on the same basis as loans for acceptances, neither principal nor interest being enforceable until one year after the War; whether the Treasury would consider extending the scheme so as to grant advances on Government or other investment securities on similar rates to advances on the war loan, so as to prevent sales which are being pressed on account of the high rates of interest now payable on loans on gilt-edged securities, which the Treasury scheme was intended to prevent; or whether, in the alternative, the Government will consider giving options for other Government securities to be exchanged into war loan on the basis of 2½ per cent. stocks being exchanged for 70 per cent. of war loan, 2¾ per cent. into 75 per cent. war loan, and 3 per cent. into 80 per cent. war loan, thus enabling holders who must realise to do so slightly under minimum prices, and the Government by the exchange thus saving interest and reducing the capital amount on their debt?
§ Mr. LLOYD GEORGEThe amount which has been advanced by the Bank of England under the Treasury scheme for Stock Exchange loans is £520,059. All the advances are against good average securities, such as are generally accepted against loans. The clause in the agreement referred to in the question is intended only to put the terms of the Government scheme in a concise form and refers to that scheme (a copy of which is appended to the agreement) for full particulars. It was accepted by all subscribers, and in no single instance objected to in any way. It is not, and has never been, the intention that interest on loans made under the scheme should be allowed to accumulate until after the end of the War. I have given careful consideration to various suggestions which have been made on the lines indicated in854W the latter part of the question, but I think the objections to the adoption of any such schemes are insuperable.