asked the Chancellor of the Exchequer to what extent the joint stock banks have exercised their right to convert their deposits, placed at the disposal of the Treasury at the rate of 1⅛ per cent., into long-term Government stock bearing interest at the rate of 2½ per cent. and 3 per cent.; and what is the approximate increase in the cost of Government borrowing resulting from such conversion?
Since 1st July, 1940, when the system of Treasury Deposit Receipts was instituted, approximately £269,000,000 of deposits have been repaid to enable the banks to subscribe for National War Bonds and Savings Bonds on their own account and on behalf of their customers. The interest payable on such Bonds exceeds by somewhat less than £4,000,000 per annum that payable on the Deposit Receipts redeemed.
Will the right hon. Gentleman answer the latter part of the Question, if the fact that joint stock banks have undertaken this has necessitated additional borrowing on his part?