Oral Answers to Questions — National Finance (Gold Purchases).

– in the House of Commons on 12th April 1933.

Alert me about debates like this

Photo of Mr David Mason Mr David Mason , Edinburgh East

32.

asked the Chancellor of the Exchequer the loss on the recent purchases of gold by this country amounting to £50,000,000 at the now current price, calculated on the Gold Standard parity which prevailed prior to August, 1931?

Photo of Mr Leslie Hore-Belisha Mr Leslie Hore-Belisha , Plymouth, Devonport

As my hon. Friend is aware, gold purchased by the Issue Department of the Bank of England is carried at its par value in sterling, the excess value being adjusted in the Exchange Equalisation Account. Details of the transactions on that account cannot be published. No question of profit or loss arises except in the event of a resale of the gold.

Photo of Mr David Mason Mr David Mason , Edinburgh East

If there is no profit or loss does that mean repudiating obligations and not restoring the pound?

Photo of Mr Leslie Hore-Belisha Mr Leslie Hore-Belisha , Plymouth, Devonport

No obligations have been or will be repudiated. If the gold is sold for more than it costs, there will be a profit. If it is sold for less than it costs, there will be a loss.

Photo of Mr David Mason Mr David Mason , Edinburgh East

Would the Financial Secretary tell us what he intends to do and what is the policy of the Government? Does he intend to restore the gold parity, which means a loss, or to repudiate? Will he answer that?