§ Sir S. Reedasked the Chancellor of the Exchequer whether he has any statement to make about the present issues of Government securities.
§ Sir J. AndersonYes, Sir. In a reply which I gave to the right hon. Gentleman the Member for East Edinburgh (Mr. Pethick-Lawrence) on 31st October, 1944, I explained that it was proposed to give a short rest to issues of the National War Bonds type, and to offer in the meantime 1¾ per cent. Exchequer Bonds 1950. It was contemplated that we should revert to an issue of the National War Bond type in due course. The Exchequer Bonds have now been on sale for about six months and the total subscriptions amount 705W to about £300,000,000. A relatively short security of this type cannot suitably remain on sale much longer, and I propose to discontinue the sale of Exchequer Bonds after Tuesday next, 12th June. On Wednesday, 13th June, and until further notice, a new issue of National War Bonds will be on sale. The rate of interest will be 2½ per cent., payable half-yearly on 15th February and 15th August. The Bonds will be issued at par. They will be repaid at par on 15th August, 1956, at the latest, but the Treasury will have the right to redeem them at par on or after 15th August, 1954, on giving three months' notice. The maximum life of the new Bonds will thus be 11 years 2 months, or some eight months longer than that of the last similar issue. In view of our continuing heavy borrowing programme, I hope that the new issue will be given the same wide measure of support as previous issues of this type.