§ 59. Mr. FIELDasked the Chancellor of the Exchequer why investors in house property have, under the Defence of the Realm Act, had their rate of interest controlled, whereas investors in a monopoly business like banking have had no control put on the rate of interest on their investment in bank shares; and why is this differential treatment of two classes of investors legalised?
§ Mr. BONAR LAWThe restrictions on the raising of rates of mortgage interest in the case of small house property are imposed by the Rent and Mortgage (War Restrictions) Act, 1915, and not by the Defence of the Realm Act. The reasons which led Parliament to pass this Act do not appear to me applicable to dividends paid by banks, whose profits are liable to Excess Profits Duty.