HC Deb 20 February 1919 vol 112 cc1137-9
97. Viscount WOLMER

asked the Chancellor of the Exchequer whether he is yet able to make a statement in regard to the future of the Capital Issues Committee of the Treasury?

99. Lieutenant-Colonel WEIGALL

asked whether the restrictions now placed on new issues of capital are to be relaxed; and, if so, in what direction?

101. Sir S. SAMUEL

asked the Chancellor of the Exchequer when it is proposed to make a statement regarding the Capital Issues Committee; and whether he will consider the possibility of abolishing all interference with the public freedom, so as to develop freely the industries of the country.

Mr. BALDWIN

The Reconstruction Committees on Currency and on Financial Facilities have advised that it is not possible under existing financial conditions, to dispense altogether with the control of capital issues, and my right hon. Friend has come to the conclusion that it is necessary, at any rate for the present, to continue this control in a modified form. It is imperative during the reconstruction period to preserve for undertakings which are essential for the speedy restoration of commerce and industry, and the development of public utility services, an adequate share of the capital which is available for investment, and to prevent any avoidable drain upon the foreign exchanges.

A Regulation under the Defence of the Realm Act will accordingly be made forthwith, prohibiting fresh issues, except under licence.

The enlargement of the purpose for which it will be proper to allow fresh issues may be expected to result in a great increase in the number of applications, and it has been represented to me that in the interests of applicants there should be machinery for allowing them to state their cases orally before the Committee, if they desire to do so, before any decision adverse to the application is arrived at. My right hon. Friend has, therefore, decided to reconstitute and extend the Capital Issues Committee. The new terms of reference are as follows: To consider and advise upon applications received by the Treasury for licences under the Defence of the Realm Regulations for fresh issues of capital, with a view to preserving capital during the reconstruction period for essential undertakings in the United Kingdom, and to preventing any avoidable drain upon foreign exchanges by the export of capital, except where it is shown to the satisfaction of the Treasury that special circumstances exist. It will be an instruction to the Committee that, in order that applications may be speedily dealt with and to enable oral evidence to be given in support of them, when desired by the applicant, that the Committee should sit by panels, consisting of three members, the decision of the panels to be subject to confirmation by the full Committee.

Lord Cunliffe has consented to act as Chairman of the new Committee, and further names will be announced in due course.

Viscount WOLMER

Can my hon. Friend say when this Committee will be set up?

Mr. BALDWIN

As soon as possible.

Mr. MacVEAGH

Can the hon. Gentleman say whether instructions will be issued to this Committee not to interfere unless in cases where the public are being asked to subscribe money?

Mr. BALDWIN

I think the terms of reference are pretty comprehensive.

Mr. MacVEAGH

That is not an answer to my question. They may be pretty comprehensive and pretty confused. I ask, Will this Committee be told that they are not to interfere except where the public are being asked to subscribe money?

Mr. BALDWIN

I think the instructions to the Committee, which I have read, will be such as will meet the case. I can assure my hon. Friend, if he will read the terms of reference a second time, he will see light.

Viscount WOLMER

Will the Stock Exchange Committee be represented on that Committee?

Mr. BALDWIN

I cannot say that, but I am very glad to make the Noble Lord acquainted with the fact that the Stock Exchange are in full accord with what has been done. Now that I have the opportunity, I should like to pay a tribute to the Stock Exchange for the loyalty with which they have supported the Government during the whole period of the War in regard to this matter of the issue of capital.

An HON. MEMBER

Will there be any new restrictions on the issue of shares for considerations other than cash?

Mr. BALDWIN

I am afraid I cannot answer that question without notice.