asked the Chancellor of the Exchequer whether he is aware that the rate at which Treasury bills are discounted is virtually fixed by a powerful market syndicate; that the rate to-day at over 20s. per cent. is nearly double the average rate for the first 11 weeks of 1939, although the Bank Rate is the same; and what steps he proposes to take to see that Treasury bills are allotted through a system of genuine tendering?

I am satisfied that no syndicate does, or could, virtually fix the rate at which His Majesty's Government can borrow on Treasury bills; this is inevitably governed by a number of factors on which the rate must depend. I see no reason to alter the conditions under which tenders for Treasury bills are lodged.

Is the Chancellor not aware that there is a group of 16 firms, virtually a syndicate, who settle the price at which Treasury bills are discounted before even the five joint stock banks come in?

Although the hon. Member speaks very confidently I think he will find that he is wrong. If he will examine his Question he will see that it contains three different dates. On each of those dates the price of Treasury bills was different, and yet on all those dates the Bank Rate was the same.

Does the Chancellor realise that he has not even attempted to answer my Supplementary Question? If I furnish him with the names of the persons, will he give an assurance that they have nothing to do with the fixing of the Treasury discount rate?

Is it not a fact that the interest rate on Treasury bills is 200 per cent. less than it was during the last war?

Is it not a fact that the last war was a racket?