§ 33. Major GLYNasked the Prime Minister whether he is aware that various industries are being hampered and industrial development brought almost to a standstill on account of the rate of exchange of the rupee having been stabilised at 10 to the £, or 2s. for the rupee, the previous rate having been 15 to the £, or 1s. 4d. for the rupee; and whether, in view of the great importance of doing everything possible to increase production and lower the cost of living throughout the British Empire, he will have the whole question reconsidered and influence banks and other financial houses to recognise that a possible temporary loss will be compensated for in a short time by increased trade and commerce?
§ The MINISTER of EDUCATION (Mr. Fisher)I have been asked to reply to this question. I have no information tending to the view expressed in the first part of the question, and if my hon. and gallant Friend is referring to India, the recent Committee on Indian exchange and currency were of opinion that the development of Indian industry would not be seriously hampered by a high rate of exchange. In recommending the now ratio of exchange the Committee took due account of the effect that a high exchange might be expected to have in mitigating the rise in prices in India. I can assure the hon. and gallant Member that the matter is being carefully watched.