§ 25. Mr. H. WILLIAMSasked the Parliamentary Secretary to the Overseas Trade Department whether his attention has been called to the restrictive effect on our export trade caused by the discouragement which is being shown towards the raising of loans in London for overseas purposes; and what action he is prepared to take?
The FINANCIAL SECRETARY to the TREASURY (Mr. Guinness)It is impossible to deal fully with this point by means of question and answer; but it is not in the interest of any part of our trade that we should lend abroad more 1814 than our savings permit: and, if we continued to overlend, a general increase in money rates would be inevitable.
§ Mr. WILLIAMSAre any restrictions imposed by the Treasury?
§ Lieut.-Commander KENWORTHYIs the right hon. Gentleman aware that the Australian Government are placing a loan of £15,000,000 in New York, and will not that be a very bad thing indeed for the Empire?
Mr. GUINNESSI think it would be very undesirable for the Treasury to take any action in a case like this. After all, you cannot lend abroad more than your export surplus, or, if you do so habitually, you are bound to be landed in very inconvenient results before long.
§ Lieut.-Commander KENWORTHYIs the right hon. Gentleman aware that the Commonwealth Government came to London, as they have done for generations past for their finance, and were told that they could not be accommodated and were turned away to Now York?
§ Major HORE-BELISHAWill the right hon. Gentleman say if these restrictions are made by the advice of the Treasury?
§ Mr. WILLIAMSIs it not the case that an export surplus may be brought about—that if the loans are created exports would follow?
Mr. GUINNESSI deprecate attempting to deal with this extremely complicated and contentious matter by question and answer.
§ Mr. T. WILLIAMSAre not these loans very often paid in the shape of goods, and, if the loan were granted from this country, would it not find employment for our people here?
§ Mr. SPEAKERThat is a matter of argument.