HC Deb 29 June 1920 vol 131 cc248-9
57. Mr. HOLMES

asked the Chancellor of the Exchequer whether the banks, on representations from him, have declined credit facilities to industrial undertakings and have called for a reduction of debit balances; whether he is aware that most industrial undertakings trade upon elasticity of credit and reasonably secured bank loans or overdrafts; and whether, in view of the necessity for continued production in order to avoid unemployment, he will suggest some means by which industrial concerns can obtain sufficient money or credit to enable them to satisfactorily maintain and, if possible, develop their trade?

Mr. BALDWIN

I would refer the hon. Member to the answer given by my right hon. Friend the Chancellor of the Exchequer to a similar question on 12th May. The subject, obviously, does not lend itself to treatment in the form of question and answer.

Mr. BOTTOMLEY

Is the right hon. Gentleman aware that this recommendation to the bankers to restrict advances even for trade purposes has had the effect of throwing an enormous quantity of Government stock upon the market and seriously depreciating its market value for sale?

Mr. BALDWIN

Obviously it is very uncomfortable for the man with an over- draft.

Mr. BOTTOMLEY

Is the right hon. Gentleman aware of that fact; if not, why is the Chancellor of the Exchequer not here to tell us?

Mr. HOLMES

In view of the answer of the right hon. Gentleman is it not the fact that the Chancellor of the Exchequer has seen the bankers since 12th May, when he gave his previous answer?

Mr. BALDWIN

I am afraid I cannot answer that question.