Oral Answers to Questions — National Finance. – in the House of Commons at on 30 January 1940.
Mr Frederick Pethick-Lawrence
, Edinburgh East
asked the Chancellor of the exchequer with a view to encouraging the largest possible proportion of conversion of the 4½ per cent. Conversion Loan to the new 2 per cent. Conversion Loan, what steps he proposes to take to secure a reduction in the price of day-to-day money?
Mr John Simon
, Spen Valley
If the right hon. Gentleman has in mind holdings of 4½ per cent. Conversion Loan by financial houses I doubt whether the rate for day-to-day money would be the most important factor in their decision whether to convert or not. On the general question, I do not feel able to change the view of the matter which I expressed when answering a similar Question put by the right hon. Gentleman on the 12th December.
Mr Frederick Pethick-Lawrence
, Edinburgh East
Is the right hon. Gentleman not aware that there is a considerable body of City opinion in favour of a change downward in the day-to-day rate, and that delay in bringing about a change may affect the conversion by an amount as high as £50,000,000; and in view of these facts does he not think it time to take some steps in this matter?
Mr John Simon
, Spen Valley
The right hon. Gentleman may be quite sure that I am at least as attentive to this matter as anybody else. I have a great responsibility in relation to it and the answer which I have given has been given after full consideration.
The chancellor of the exchequer is the government's chief financial minister and as such is responsible for raising government revenue through taxation or borrowing and for controlling overall government spending.
The chancellor's plans for the economy are delivered to the House of Commons every year in the Budget speech.
The chancellor is the most senior figure at the Treasury, even though the prime minister holds an additional title of 'First Lord of the Treasury'. He normally resides at Number 11 Downing Street.
