Mr. De la Bèreasked the Chancellor of the Exchequer whether, as regards Treasury deposit receipts, it is proposed to increase this form of Government borrowing from the banks in the same ratio as the bank moneys on deposit increase; and, since these Treasury deposit receipts are presumably unrelated at the present time to the amount of money the banks have on deposit, will the Government take steps to reduce the rate of interest paid to the banks in connection with these cost-less credits?
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§ Sir K. WoodIn reply to the first part of the Question the amount of the borrowings from the banks by means of Treasury deposit receipts will be regulated in the future, as in the past, by the Government's weekly needs. As regards the rate of interest, I explained in my reply to my hon. Friend the senior Member for the City of London on 4th July, that the rate would be fixed from time to time in the light of prevailing conditions and I see no reason to alter the existing rate.
Mr. De la Bèreasked the Chancellor of the Exchequer whether, as regards the Treasury deposit receipts he will state the total amount in the aggregate that the Government have borrowed since the inception of the scheme to the 31st October, 1940; and the average rate of interest that has been paid on these Treasury deposit receipts during this period?
§ Sir K. WoodThe total amount borrowed up to 31st October, 1940, by means of Treasury deposit receipts from the banks was £,224,000,000 of which £6,000,000 was repaid by that date. The rate of interest paid on these borrowings was 1⅛ per cent. throughout.