Mr. De la Bèreasked the Chancellor of the Exchequer whether, arising out of the conversion operations on Treasury deposit receipts and the £46,000,000 converted into Government securities carrying 3 per cent. up to the 31st January, 1942, the Treasury will take action to prevent banks making further conversions into 3 per cent. interest bearing securities; 943W and whether, in order to relieve the taxpayer, he will consider issuing a special I per cent. Government security, which would be utilised for all such conversions as and from 6th April, 1942?
§ Sir K. WoodNo, Sir. I see no reason to change the present arrangements?
Mr. De la Bèreasked the Chancellor of the Exchequer whether he can state the date of the introduction of Treasury deposit receipts and the first occasion on which the Empire banks were permitted to participate with the London clearing and Scottish banks?
§ Sir K. WoodThe scheme came into operation on the 1st July, 1940. The first occasion on which Empire banks participated was on the 2nd January, 1941.
Mr. De la Bèreasked the Chancellor of the Exchequer whether, in connection with the Treasury deposit receipts, he can give an assurance that it is not the intention to extend to financial institutions other than the Empire banks and the London clearing and Scottish banks the right of supplying credits for Treasury deposit receipts?
§ Sir K. WoodNo, Sir. I do not consider that on a matter of this kind it would be advisable to lay down binding rules as regards future policy.