§ 47. Mr. CRAVEN-ELLISasked the Chancellor of the Exchequer whether he will take legislative powers to control the system of the supply of credit for industry in order to help industry which finds it difficult now to obtain credits for the purpose of business expansion, as is shown by the suspension of the construction of the Cunard Steamship Company's ship, No. 534, owing to the inability of the Cunard Company to obtain financial facilities at reasonable rates of interest?
§ The CHANCELLOR of the EXCHEQUER (Mr. Chamberlain)No, Sir. Whatever be the nature or the cause of the difficulties alluded to, I am satisfied that the control of credit by the Government under statutory powers is not the right solution of the problem.
§ Colonel WEDGWOODAre not the Government controlling credit when they keep the Bank rate at 6 per cent., as at present?
§ Mr. CHAMBERLAINThe right hon. and gallant Gentleman ought to know that the Government have nothing to do with the Bank rate.
§ Colonel WEDGWOODAre we to understand from that answer that the Government are not urging the Bank of England to keep the Bank rate at 6 per cent., and that it is retained at that level at the wishes of the directors of the Bank of England alone?
§ Mr. CHAMBERLAINYes, Sir; the Government do not interfere with the discretion of the Bank of England.
§ Colonel WEDGWOODAre they not consulted in the matter?
§ Mr. CHAMBERLAINConversations take place from time to time, but they are not consulted in any way.
§ Mr. COCKSAre we to understand that the country is governed, not by the Government, but by the banks?