§ Mr. PERKINSasked the Chancellor of the Exchequer if he will take into consideration the propriety of vetoing the official quotations for enemy bonds, having regard to the fact that neutral nations are liable to be favourably impressed by such apparent British backing?
§ Mr. McKENNAThe only enemy bonds which can be dealt in on the Stock Exchange are bonds which have been continuously in physical possession in the United Kingdom since the outbreak of War, and practically the only transactions which take place in such bonds are sales by British holders for foreign account. As such sales increase the liquid resources of this country at the expense of funds abroad seeking investment in enemy securities, which, in the absence of facilities for obtaining the bonds in question, would be likely to be employed in purchasing new securities of enemy governments, and so directly assisting enemy finance, I am of opinion that it is in the national interest that the transactions should be encouraged by the continuance of official quotations of the bonds referred to.