§ 93. Mr. BUTCHERasked the Chancellor of the Exchequer whether the winding-up of the affairs of the Deutsche, Dresdner, and Disconto Gesellschaft enemy banks in this country has yet been completed; if not, what remains still to be done; and whether, in view of the injury to British mercantile and banking interests caused in the past by the operation of German banks having their offices in this country, he will take immediate steps for speedily and completely eliminating these hostile influences from our midst?
§ Mr. McKENNAThe banks referred to in the question are wholly precluded from carrying on business in this country except under licence to the extent necessary to complete transactions, outstanding at the outbreak of war. Very considerable progress has been made towards the settlement of these transactions, which is being carried out as rapidly as possible, but it has not yet been fully completed. The question to what extent, if at all, the 956 banks will be allowed to resume business after the War is a matter upon which I am not in a position to make any statement.
§ Mr. BUTCHERWhat remains to be done?
§ Mr. McKENNAIf the hon. and learned Member will give me notice of the question I should be very happy to answer it.
§ Mr. R. GWYNNEHas the right hon. Gentleman received a report from the liquidator saying when he thinks the matter will be disposed of? It has been constantly brought up.
§ Mr. McKENNAI have answered the question as fully as I can. I have personally no further information.
§ Mr. GWYNNEDoes the right hon. Gentleman remember an answer which he gave me many months ago on this subject?
§ Mr. McKENNAThere are a great many questions on the Paper.
§ Mr. WATTIs there any truth in the statement that the Dresdner Bank is in possession of Government secrets and that that is the reason why it is not wound up?
§ Mr. McKENNAI know nothing about the Dresdner Bank, but I should think that there is not the slightest foundation for the question.
§ Sir E. CARSONWill any report be laid on the Table of this House showing how the proceedings in the liquidation of these various banks have been progressing?
§ Mr. McKENNAI will ask Sir William Plender.
§ Mr. FLAVINIs there any prospect of the liquidators completing their work before the War is finished?
§ Mr. ASHLEYIs it a fact that the liquidators are paid by the hour and that the longer they go on working the more money they get?
§ Mr. McKENNAI do not know whether that is so or not.
§ Mr. SPEAKERAll these points have been dealt with recently in Debate, including the particular question which the hon. Member has just asked.
§ 94. Mr. BUTCHERasked how many enemy aliens are still employed at the London offices of the Deutsche, Dresdner, and Disconto-Gesellschaft banks, respectively, and what are their respective 957 duties; whether the continuance of the employment of enemy aliens in the work of winding-up these banks is conducive to a speedy winding-up; and whether he will consider the possibility, after twenty-six months of controlled management, of replacing these enemy aliens by persons of British birth and origin?
§ Mr. McKENNAI am informed that the number of alien enemies still employed at the Deutsche Bank is five; at the Dresdner Bank one; and at the Disconto-Gesell-schaft three. Two of such aliens will be interned on 1st December next, which would then leave a total of seven alien enemies at the three banks, as compared with 363 on 31st July, 1914, immediately prior to the outbreak of war. The remaining seven enemy employés are managers, sub-managers, and heads of departments. As such, they are familiar with, and have a complete knowledge of the numerous and complicated transactions now being closed, which other members of the staff do not possess. They hold the banks' procuration, and their signatures are required for dealing with the assets in this country and abroad. It is impossible to replace these employés by persons who are in no way familiar with the banks' past business. The removal of these enemies would deprive the controller of their assistance, and, in his opinion, impede rather than accelerate the settlement of the banks' affairs.
§ Mr. BUTCHERWas it not possible in twenty-six months to find other persons?
§ Mr. McKENNAA liquidator or controller is put in control of these banks. I am sure that he is conducting the business in the best interests of the State. It must be remembered that the business of these banks relates only to such matters as were undertaken before the outbreak of the War. The banks are being wound up for the benefit of the British creditors, and I am sure that if my hon. Friends who question me were themselves creditors they would also be anxious that their interests should be regarded as well as what are popularly regarded as the general interests of the State in the conduct of these banks. But no new business is allowed to be undertaken, and it is only British interests that are regarded in winding-up these banks.
Sir H. DALZIELIs it not the case that Sir William Plender has nothing whatever to do with the government and manage- 958 ment of these banks, and that his duty is merely to check and identify certain shares and other things, and is the German manager still in full control?
§ Mr. McKENNAA controller has been put in for the purpose of supervising the general business of the banks and, I assume among other things, making sure that no business is undertaken by these banks except the continuation and finishing of such business as was already opened before the outbreak of war. I am sure that my right hon. Friend has no justification for shaking his head and implying that that is not being done.
§ Sir E. CARSONDoes the controller make regular statements or reports to any department of the Government as to how these liquidations are proceeding?
§ Mr. McKENNANo report has reached me personally. I will inquire of my right hon. Friend whether they have reached the Board of Trade, and whether it is not advisable to have such reports.
§ Mr. BILLINGIn view of the statement that these banks are being wound-up for the benefit of British creditors will the right hon. Gentleman consider the idea of forming a committee of British creditors of each bank to attend to the winding-up?
§ Mr. McKENNAI think that that might have been an excellent idea two years ago, but with the business of these banks almost finished I do not think that it would be wise to make a change now.
§ Captain BARNETTIs it not desirable to make it impossible for these banks to resume business after the War?