§ 50. Mr. BUTCHERasked the Chancellor of the Exchequer whether he will state what reason, if any, exists for not paying British creditors of the head offices and of branches outside this country of the Deutsche Bank and other enemy banks either out of the assets of the English branches of those banks, respectively, or out of the assets in this country belonging to the head offices or to the branches out side this country of those banks, respectively?
§ Mr. MCKENNAThe question of the position of the creditors of the head office of the Deutsche Bank and its branches other than the London agency was carefully considered in connection with the 154 original closing of the London agency on the outbreak of war, and it was decided that no difference could be made between those creditors and the creditors of any other enemy institution in an enemy country. Perhaps I may add that if the hon. Gentleman desires it I can give him a long statement on the subject which it is impossible to explain in the course of an answer to a question.
§ Mr. BUTCHERWill the right hon. Gentleman also consider the question whether the customers in the English branches should not claim to be paid in priority to the British creditors at the head office?
§ Mr. McKENNAI am very unwilling to answer a question on an isolated point in this very complicated subject, but I will be very glad to give the statement to the hon. Gentleman covering the whole subject.
§ 51. Mr. BUTCHERasked if there are assets in this country belonging to the head offices or to branches, outside this country, of the Deutsche Bank and other enemy banks, either in the hands of the Public Trustee or of the English branches of these enemy banks; and if he can state the approximate amounts of such assets?
§ Mr. McKENNAThere are, no doubt, a considerable number of securities in this country belonging to the head offices or to branch offices outside this country of the Deutsche Bank and other enemy banks. Notice of the possession of these securities has been given to the Public Trustee in cases where he is not already in possession of them. It is, however, difficult to give any figure which would be even an approximate value of these securities in present circumstances; and no figure could give any information as to the value or bulk of the securities which would be of any use as a guide to creditors in this country of the head offices or foreign branches of the banks, inasmuch as it is impossible to ascertain whether the securities actually belong to the head office or branch or belong, as in most instances would be the case, to customers of the head office or branch.
§ Mr. BUTCHERWill those securities be vested in the Public Trustee?
§ Mr. McKENNAYes; all enemy securities will be vested in the Public Trustee. I admit I would prefer to have notice of any question.
§ 90. Mr. BILLINGasked the President of the Board of Trade whether his attention has been called to the fact that, notwithstanding the Government's repeated statement that the enemy banks are kept open solely for the purpose of liquidating outstanding engagements in this country, they have transacted and are still transacting new business in remitting money both to and from enemy countries for the use of prisoners of war and parties interned; what is the total turnover of such business transacted by the enemy banks in this country since the outbreak of war; and whether, seeing that such business is done at a profit, he will direct that all operations of this nature should in future be done either through British banks through neutral countries or by the neutral banks having branches in this country?
§ Mr. McKENNAMy right hon. Friend has asked me to answer this question. The work of getting money from Germany to this country for German prisoners of war and interned Germans in this country and of distributing the money to the commandants of camps has, up till lately, been transacted under special authority through the Deutsche Bank. The hon. Member is under a misapprehension in inferring that this work has been done at a profit; it has been done at a considerable loss to the German bank. Immediately the work of collecting the assets and paying the non-enemy debts of the Deutsche Bank was completed, arrangements were set on foot for transferring the work to a committee and the account to a British bank—it is hoped, the Bank of England.
§ 52. Colonel IVOR PHILIPPSasked the Chancellor of the Exchequer if he will say what steps, if any, have been taken to establish a clearing house in this country where British companies, firms, and individuals, being creditors of enemy firms and individuals, can receive payment of their debts from the moneys belonging to enemy firms now in the hands of the Pubic Trustee irrespective of whether the particular enemy debtor firm has assets in this country; and, if no such steps have yet been taken, whether he proposes to take any steps to form such clearing house or whether the Treasury take up the attitude that they cannot be burdened with the realisation and distribution of enemy 156 assets amongst British creditors or that the only remedy for such British creditors is to sue in Germany after the War?
§ Mr. McKENNAThe suggestion made in the question has frequently been considered, but the establishment of such a clearing house has been found to be impracticable while the War continues. Unless it is proposed to confiscate the property of individual enemies in this country for the benefit of creditors of other enemies—a step which would undoubtedly lead to reprisals and to the further complication of the situation—any scheme of the character proposed would require the consent of the parties, and probably also the assistance of the enemy Governments; it would also he-cessitate a considerable amount of intercommunication between commercial interests in this country and in enemy countries, which would obviously be undesirable under existing conditions. So far, however, from its being the policy of the Treasury that the only remedy for British creditors of German firms should be to sue in Gemany after the War, the main object of the public control of German assets in this country is to secure that proper treatment may be obtained for all claims, both public and private, against enemy Governments and persons.
§ 53 and 54. Colonel IVOR PHILIPPSasked the Chancellor of the Exchequer (1) whether a list of British creditors of enemy firms has been compiled, together with the amounts due to such creditors; to what does the total of such enemy debts amount; and (2) if he can state the total approximate value of enemy assets now vested in the Public Trustee?
§ Mr. McKENNAAll debts returned by British creditors of enemy firms under the Proclamation of the 7th September, 1916, are being recorded by the custodian. The returns at present number some 17,500, amounting to £79,000,000. Returns are still daily being received. The approximate value of enemy assets now vested in the Public Trustee is £10,000,000.
§ 72. Major HUNTasked the Prime Minister whether, in view of the contradictory principles adopted by the different Government Departments, and particularly the Colonial Office and the Board of Trade, in regard to the carrying given to the controllers of enemy businesses, and for the purpose of relieving the Government Departments of this 157 pressing public question, he will take steps to set up a special tribunal principally composed of representative business men unconnected with official Departments to deal with all questions relating to enemy property and enemy businesses in British hands and British property and interests in the hands of our enemies, with power to that tribunal to hear and deal with all claims by British subjects against enemies?
§ Mr. BONAR LAWNo, Sir; I see no necessity to adopt this suggestion.
§ 94. Mr. BOOTHasked the President of the Board of Trade, if the instructions given to the controllers of enemy businesses are to the effect that the company as well as the trade must come to a speedy end; and whether he will consider the fixing in each case of a time limit or guillotine beyond which the controller's services will not be required?
§ Mr. PRETYMANI have already laid upon the Table of the House and am sending my hon. Friend a copy of the memorandum of instructions sent to controllers for their guidance, and designed to ensure all possible dispatch in completing the winding-up of the business concerned. It would in my opinion be impracticable to fix a time limit in each case beyond which the controller's services would not be required.
§ Mr. BILLINGWill the hon. Gentleman consider the expediency of appointing an inspector?
§ Mr. PRETYMANThe inspector is appointed first and the controller after-wards.