Note Holdings.

Oral Answers to Questions — National Finance. – in the House of Commons on 28th July 1942.

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Photo of Mr James Wootton-Davies Mr James Wootton-Davies , Heywood and Radcliffe

asked the Chancellor of the Exchequer whether, to save increases in the note issue, he will consider urging private individuals and traders to reduce their holding of notes to the minimum and to retain as little cash as possible?

Photo of Sir Kingsley Wood Sir Kingsley Wood , Woolwich West

I entirely agree with my hon. Friend's desire to see holdings of notes with the public reduced to a minimum. As I have previously pointed out, large individual holdings and unduly large holdings by traders expose the holders to a real risk of loss. Moreover, that risk is quite unnecessary in view of the opportunities of depositing the notes in Savings Banks or other banks, all of which offer facilities for ready withdrawal in case of need.

Mr. De la Bère:

Is it not a fact that many people hold notes because they do not want to make returns for Income Tax? Will my right hon. Friend consider issuing new notes and calling in the old ones?

Photo of Sir Kingsley Wood Sir Kingsley Wood , Woolwich West

My hon. Friend might give me any particulars that he can.

Photo of Mr James Wootton-Davies Mr James Wootton-Davies , Heywood and Radcliffe

While thanking my right hon. Friend for his reply, will he consider forgoing the Stamp Duty on cheques in order to encourage their use instead of cash, say for amounts over £3?

Photo of Sir Kingsley Wood Sir Kingsley Wood , Woolwich West

I doubt if I could do that.

Photo of Mr Herbert Williams Mr Herbert Williams , Croydon South

Is it not possible that people holding notes think they will not be rentiers and that there will be less danger from the Minister of Labour?