HC Deb 26 February 1924 vol 170 cc228-9
13. Mr. FINNEY

asked the President of the Board of Trade if, in view of the virtual monopoly in banking exercised in the United Kingdom principally by the big five banks, concurrent with the complaint of the commercial community of the limitation of credit facilities operating to the disadvantage of our trade and commerce and of employment, he will appoint an expert committee to inquire into the subject, one term of reference of which shall be how best to restore competition in this national service?

Mr. SNOWDEN

The question of bank amalgamations was fully investigated by a Committee in 1918 which paid particular attention to the dangers feared by the hon. Member, and I do not think any useful purpose would be achieved by a further Committee. Any proposal for amalgamation is now submitted to the Treasury and the Board of Trade, who take the advice of an advisory Committee. I may add that further amalgamation of the larger banks would not be likely to be viewed with favour.

Sir W. MITCHELL-THOMSON

Is the right hon. Gentleman aware that the Under-Secretary of State for Air has publicly advocated the nationalisation of banks, and may I inquire whether that policy is the policy of His Majesty's Ministers?

Mr. SNOWDEN

I have no official information of any views stated by the Under-Secretary of State for Air, and, therefore, I am not in a position to answer that question.

Sir P. LLOYD-GREAME

Will the right hon. Gentleman try to exercise Treasury control?

Sir FREDRIC WISE

Is it not a fact that anybody can start a bank so long as he pays the Bank Stamp Duties?

Mr. SNOWDEN

I am afraid I cannot answer that question.