HC Deb 05 March 1918 vol 103 cc1834-6
60. Mr. BUTCHER

asked the Chancellor of the Exchequer whether his attention has been called to the proposal made by Sir W. Plender, in his Report of the 16th December, 1916, that the outstanding debts and assets of the Deutsche Bank, the Disconto-Gesellschaft, the Dresdner Bank, the Oesterreichische Laender Bank, and the Anglo-Austrian Bank should be vested in the custodian of enemy property, to be realised by him as far as possible, and administered in accordance with the licences granted to the banks by the Home Secretary; whether this proposal was con- sidered and rejected by the Government; and, if so, whether there exist for such rejection any better reasons than those advanced by Mr. W. Leaf and Sir R. V. Vassar-Smith in their Report of 12th January, 1917?

Mr. BONAR LAW

The answer to the first two parts of the question is in the affirmative. I have recently again considered a suggested alteration in the method employed in the collection and disposal of the assets of the London agencies of the enemy banks, but the results achieved under Sir William Plender's direction since the investigation of this question by Mr. Leaf and Sir Richard Vassar-Smith confirm me in the view that to make the change suggested would not hasten the final liquidation of the banks.

Mr. FABER

Is not the amount of the still outstanding assets a relatively trivial matter compared with the overweening necessity of winding up these banks once and for all?

Mr. BONAR LAW

I have looked into this question very closely, and the rights of individuals are bound up with it, and I do not think we should be justified in taking the course suggested.

Mr. BILLING

Are they individual Britishers or individual Germans?

Mr. FABER

In the circumstances would it not be better to reimburse the individuals and close these banks?

Mr. BONAR LAW

I do not think so. I think that everything that can be done is being done to wind up these banks effectively and quickly.

Mr. HENDERSON

Is it not a fact that they are practically wound up; that they have ceased to exist as banks?

Mr. BONAR LAW

Of course, they have ceased to exist as banks.

Mr. HENDERSON

What more do you want?

Mr. BONAR LAW

Some of their assets have to be realised, and that is the point.

61. Mr. BUTCHER

asked the Chancellor of the Exchequer whether, having regard to the statements in paragraph 21 of Sir W. Plender's Report of 13th December, 1917, and fully recognising the valuable services rendered by Sir W. Plender in the liquidation of the German and Austrian banks in this country, he will request Sir W. Plender to make a further Report not later than June, 1918, with a view, if possible, of terminating his duties as controller of these banks?

Mr. BONAR LAW

It does not appear that any useful purpose would be served at the moment by asking Sir William Plender to make a further Report not later than June, 1918. His last Report dealt exhaustively with the position at 30th September, 1917, and explained the nature of the operations still to be undertaken. I understand that the delivery of securities to the custodian is proceeding as quickly as possible, but that certain Vesting Orders embracing the most important section of the securities, both in value and bulk, are still to be made. A further Report will be asked for at 30th September this year.

Mr. BUTCHER

When these Orders now in contemplation have been made and the securities still belonging to the banks have been placed in safe custody, will the right hon. Gentleman see that the proceedings for the winding up of the banks are brought to an end and the question of the adjustment of the rights of individuals be considered hereafter?

Mr. BONAR LAW

It is the wish of the Government that the banks should be wound up effectively as soon as possible. I think that nothing is gained by doing more than we are doing now.

Sir J. D. REES

Are there not small committees of administration? Is it correct to speak of Sir W. Plender as the Controller?

Mr. HENDERSON

Is it not a fact that the mere vesting of assets in the Public Trustee completely closes the banks for all operations in this country, and that simply to force realisation would be to injure ourselves, when there are so many assets which cannot possibly be realised until after the War is over?

Mr. BONAR LAW

No, I do not take the view of my hon. Friend. I think that the general desire, with which I sympathise, is that the banks should, if possible, be finally closed.

Mr. HENDERSON

They are closed.