Note Issue

Oral Answers to Questions — National Finance – in the House of Commons on 26th November 1942.

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Photo of Mr William Craven-Ellis Mr William Craven-Ellis , Southampton

asked the Chancellor of the Exchequer the amount per annum which the Bank of England receives for its services in the management of the note issue and who receives the interest on the Government investments held as backing for the fiduciary note issue, amounting to £880,000,000?

Photo of Sir Kingsley Wood Sir Kingsley Wood , Woolwich West

The Bank receive nothing for their services over and above the actual costs incurred by them in the production and management of the note issue. As regards the latter part of my hon. Friend's Question, I would refer to the answer which I gave him on 8th September, 1942.

Photo of Mr William Craven-Ellis Mr William Craven-Ellis , Southampton

Is it correct to say that the Bank of England receives a sum approximating to £6,000,000 per annum for the conduct of the note-issue account?

Photo of Sir Kingsley Wood Sir Kingsley Wood , Woolwich West

I do not know where my hon. Friend gets all his figures from. My answer has given him the facts.

Photo of Mr William Craven-Ellis Mr William Craven-Ellis , Southampton

Can my right hon. Friend give us a schedule of the Government securities which are backing the note issue and say what the position is?

Photo of Sir Kingsley Wood Sir Kingsley Wood , Woolwich West

I have already answered this Question.

Photo of Mr William Craven-Ellis Mr William Craven-Ellis , Southampton

asked the Chancellor of the Exchequer whether he will substitute for the Government securities which are based on debt and held by the Bank of England against the note-issue a guarantee approved by Parliament to pay the holders of currency notes on demand?

Photo of Mr William Craven-Ellis Mr William Craven-Ellis , Southampton

Is it not a fact that my right hon. Friend told me on Tuesday last that it was the Government's obligation to back the money which is now being circulated in North Africa, and if that is a Government obligation, is it not possible for money to be circulated in this country on the same basis?

Photo of Sir Kingsley Wood Sir Kingsley Wood , Woolwich West

Whatever I told the hon. Member last Tuesday is certainly correct.

Photo of Mr William Craven-Ellis Mr William Craven-Ellis , Southampton

Why cannot it be done in this country with our note issue?

Photo of Mr Herbert Williams Mr Herbert Williams , Croydon South

Is it not a fact, under the Currency and Bank Notes Act, 1928, that the whole of the profits of the Bank of England are paid to the Chancellor of the Exchequer?

Photo of Sir Kingsley Wood Sir Kingsley Wood , Woolwich West

Perhaps my hon. Friend will take the point up with my hon. Friend who put the Question.