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London Stock Exchange (Contango Facilities)

Volume 465: debated on Thursday 26 May 1949

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54.

asked the Chancellor of the Exchequer whether Treasury approval was sought before con-tango facilities were revived on the London Stock Exchange.

No, Sir. The question of Treasury approval did not arise, as this is a matter in which the Stock Exchange is responsible for its own procedure.

Can the Minister say what public interest is served by widening the scope of this unnecessary and unproductive speculation?

I think this is a case mainly for the Stock Exchange, rather than for the Government. It is a fact that the market for these securities is improved by this practice.

May I ask the hon. Gentleman if there was any consultation both with the Treasury and the Bank of England before reverting to this pre-war practice?

We were informed that it was likely to happen, but did not think it necessary to express any opinion.