HC Deb 28 July 1919 vol 118 cc1808-9
48. Mr. BIRD

asked the Prime Minister if he is aware of the depreciation in the rate of exchange between Great Britain and the United States of America and the consequent burden of increase, in the real cost arising there from, to the industrial classes of this country in the supplies of their food at present only obtainable from America; what policy the Government intend to adopt to meet this situation; and whether, in particular, for the guidance of manufacturers, he will give a pledge that the present restrictions upon imports will not be relaxed, especially as to motor vehicles and motor cycles, until the ex changes have become more normal, thus checking the adverse balance of imports over exports?

Mr. BALDWIN

The answer to the first part of the question is in the affirmative. As regards the second part, the matter is engaging my constant attention. I would point out to my lion. Friend, however, that the Government can do little to rectify exchange except by borrowing Large amounts in the United States. This course would provide a temporary remedy only, and I am not prepared to adopt it. Improvement must depend ultimately on economy of consumption and stimulation of production in this country, and (pending readjustment of conditions) on the negotiations of private credits in the United States to finance our necessary imports.

As regards the last part of the question, the Leader of the House said in reply to the hon. Member for St. Rollox (Mr. G. Murray) on Wednesday, 243rd July, that he-hoped that an announcement of the Government's trade policy after the 1st Sep- tember would be made before the Recess, and I would suggest that my hon. Friend should await that statement.

Mr. BIRD

Is my hon. Friend aware that the American Chamber of Commerce in London- have announced that there will be an importation of 5,000 motor vehicles of all descriptions of American manufacture with in the next few months, and that the American Chamber of Commerce have applied for an increase in the licence of the rations for boots and shoes of American make in this country, and, with that in view, will he give instructions that the mystic box to which the President of the Board of Trade referred shall be opened forthwith?

Mr. KILEY

Before that question is answered, may I ask if the President of the Board of Trade is aware that it is almost impossible to obtain a low-priced motor-car in this country at the present time?

Mr. BALDWIN

I will convey the gist of these supplementary questions to my right hon. Friend the President of the Board of Trade.