HC Deb 22 July 1918 vol 108 cc1453-5
54 and 55. Mr. FIELD

asked the Chancellor of the Exchequer (1) whether his attention has been directed to the cohesion of capital interests by means of banking amalgamations; and whether the Government propose to take measures to prevent the establishment of a monopolistic money trust; (2) whether he is aware that individuals may object to subscribe to War Loans if they are placed at the mercy of large financial organisations with respect to credit and overdrafts for business purposes; and whether some of the dividends paid by banks interested in limiting competition will be turned to the discharge of war debt or of cheapening credit?

Mr. BONAR LAW

The Government are fully alive to the necessity of preventing the establishment of a money trust, and carefully considered the recent amalgamations before agreeing to them. I do not think the proposal in the hon. Member's second question is either necessary or desirable.

Sir H. DALZIEL

Will the right hon. Gentleman be prepared to afford an opportunity of discussing this matter, in view of its great importance, and will he facilitate a Debate on the Vote of Credit?

Mr. BONAR LAW

I think this would be a very suitable subject for discussion on the Vote of Credit, and I should certainly offer no objection to it.

Mr. PRINGLE

Has the Ministry of Reconstruction considered the future of banking in this country in the light of these amalgamations?

Mr. BONAR LAW

The whole subject of credit facilities after the War is being considered.

Mr. FIELD

Are we to understand that no future amalgamations will be allowed until they are examined by this Committee?

Mr. BONAR LAW

As the House knows, a Committee was set up to report on the general subject, and they recommended that an Advisory Committee should be established to give advice to the Government Department. This Committee has been set up, and the amalgamations that are taking place have been on their advice and after further consideration by the President of the Board of Trade and myself.

Mr. RUNCIMAN

Is the right hon. Gentleman sure that it would be in order to discuss this subject on the Vote of Credit; and if it should appear that it is not in order, will he provide some other opportunity, or indicate some other opportunity, for the discussion?

Mr. BONAR LAW

It is a question of time. Possibly the Adjournment Motion would be sufficient if the Vote of Credit is not available.

57. Captain WRIGHT

asked the Chancellor of the Exchequer, in view of the considerable number of amalgamations of banks which have been approved by the Committee recently set up, what, if any, stipulations have been imposed upon the amalgamated banks as a condition of approval by the Committee for facilities to be afforded by the banks to provincial and local enterprise and for powers of provincial and local directors and managers to make advances for such enterprise without reference to the central amalgamated management?

Mr. BONAR LAW

The Committee required the proposers of each amalgamation to justify their scheme with reference to the public interest, and obtained assurances from them that very few, if any, of the existing branches of the banks would be closed. No specific conditions were attached as to the powers of local directors and managers.