§ Sir G. Broadbridgeasked the Chancellor of the Exchequer whether he has arty further statement to make on Government borrowing?
§ Sir K. WoodYes, Sir. To meet current requirements I rely primarily on subscriptions to National War Bonds, Savings Certificates and Defence Bonds. But in view of the present volume of Treasury Bills, and of the uneven spread of the receipt of revenue, which is now accentuated by the high rates of direct taxation, I have arranged as an additional moans of covering our present weekly needs to take deposits from the Clearing and Scottish banks of amounts to be fixed weekly. The deposits will be repayable after 6 months, but there will be a right to request repayment either for investment of money in new national issues or in order to cover any emergency needs:1034W in the latter case the amounts repayable will be discounted at bank rate. The rate of interest will be fixed from time to time in the light of prevailing conditions, and is at the moment 1⅛ per cent. This additional type of short loan has been brought into being this week. In the ordinary way a need of funds due to the uneven spread of revenue would be met by an increased issue of Treasury Bills. But I prefer a slightly longer security on this occasion and one which is not negotiable. As compared with the alternative of selling 2½ per cent. National War Bonds to the banks, there is the important saving of interest and also, as is very desirable, a greater control from the centre of the amount of short-term borrowings.