HC Deb 28 September 1931 vol 257 cc8-9
50. Colonel HOWARD-BURY

asked the Prime Minister whether the Government are taking any steps to prevent foreigners gambling in the pound sterling and forcing its value down in terms of foreign currencies?

The CHANCELLOR of the EXCHEQUER (Mr. Philip Snowden)

I have been asked to reply. The essential steps, which we have already taken, are to balance our Budget, to set our faces against any sort of inflationary measures, and to control exchange purchases by persons resident in this country. It is not desirable to prevent realisation of sterling assets by foreign holders at a sacrifice if they decide to do so. As regards speculation, persons who sell sterling at figures well below its intrinsic value are incurring serious risks and the remedy will come quickly enough when they begin to make losses. In the meantime it is essential that speculative operations should not be assisted by allowing foreigners or their nominees to obtain new sterling credits in this country. In this connection I welcome the decision of the Stock Exchange Committee to limit transactions to cash dealings.

Mr. MILLS

Is this confined to foreigners? Have we not proof that gambling was undertaken by some of the members who signed the May Report?

Mr. SNOWDEN

I see no reason why the hon. Member should put that question, if he is well aware of the fact.

Mr. THURTLE

Are we to understand that there is not now, and never was, any serious danger of a great flight from the pound?

Mr. SNOWDEN

The hon. Member must assume nothing of the sort.

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