§ Mr. N. MACLEANasked the Chancellor of the Exchequer how many million pounds of War Loan stock is held by the various banks in this country; and whether he can state the amount upon which 6 per cent. interest is paid?
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§ Sir R. HORNEI have no information as to the exact holdings of banks, as distinct from other holders, in War Loans. No internal loans carrying 6 per cent. interest are now outstanding.
§ Mr. N. MACLEANasked the Chancellor of the Exchequer whether, seeing that the bank rate at present is 5 per cent., and that he can borrow money from the banks at this rate, he will take steps to borrow the amount necessary to pay off all War Loan on which more than 5 per cent. is being paid; and will he state how much he will save by this step?
§ Sir R. HORNEThe rate for short term money is no indication of the rate at which long term borrowing can be effected, so the comparison which the hon. Gentleman seeks to make is ill-founded. Moreover, holders of the various Government loans are entitled to the interest terms on which they subscribed to those loans until the agreed date of maturity. Nothing could be more harmful to the general interests of the country than an attempt to break these contracts.