National Securities (Interest).

Oral Answers to Questions — National Finance. – in the House of Commons on 21st July 1942.

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Photo of Sir John Mellor Sir John Mellor , Tamworth

asked the Chancellor of the Exchequer whether, in order to attract investors who are afraid of inflation, he will offer a long-term stock, carrying a rate of interest which shall vary upwards and downwards with the official cost-of-living index published by the Ministry of Labour?

Photo of Sir Kingsley Wood Sir Kingsley Wood , Woolwich West

No, Sir. I do not think that, in present circumstances, there would be any advantage in the issue of a stock such as my hon. Friend suggests.

Photo of Sir John Mellor Sir John Mellor , Tamworth

If the Minister of Labour is wrong, and inflation does not occur, would not the issue of such a stock be a very profitable transaction for the. Treasury?

Photo of Sir Kingsley Wood Sir Kingsley Wood , Woolwich West

Yes; but there are other considerations. Such investors as my hon. Friend has in mind should invest in the war issues already available, and thereby assist the Government in maintaining the measures which they have taken against the danger of inflation, and which have achieved a large measure of success.

Photo of Sir John Mellor Sir John Mellor , Tamworth

As many State payments are based on the cost-of-living index, why should not similar protection be offered in the case of interest on National Savings?

Photo of Sir Kingsley Wood Sir Kingsley Wood , Woolwich West

I do not agree with my hon. Friend about the general desire for such stock. I do not think that there is an appreciable number of investors who desire such an issue to be made.