Bonus Share Issues

Oral Answers to Questions — National Finance – in the House of Commons at 12:00 am on 12th July 1949.

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Photo of Mr Ronald Chamberlain Mr Ronald Chamberlain , Lambeth Norwood 12:00 am, 12th July 1949

asked the Chancellor of the Exchequer how many applications for permission to issue bonus shares have been received by the Capital Issues Committees since 6th April, 1949; how many have been sanctioned; how many refused; and what was the aggregate nominal value in each case.

Photo of Sir Stafford Cripps Sir Stafford Cripps , Bristol East

Up to and including 6th July, 116 applications had been received to a nominal amount of £43,381,021; of these 115 had been sanctioned to a nominal amount of £43,231,021; one had been refused, nominal value £150,000.

Photo of Mr Ronald Chamberlain Mr Ronald Chamberlain , Lambeth Norwood

Does not that reply show that there is really no proper control being exercised if 115 out of 116 have been allowed, with £43 million as the nominal value and undoubtedly twice that amount as the market value? Is it not time this racket stopped?

Photo of Sir Stafford Cripps Sir Stafford Cripps , Bristol East

No, Sir. It shows that applications have been made only in proper cases.