§ 58. Colonel WEDGWOODasked the Chancellor of the Exchequer whether the restrictions on the issue of foreign loans or conversions at home are imposed in the interest of investors of British capital or to keep money cheap and plentiful for other purposes?
§ The FINANCIAL SECRETARY to the TREASURY (Mr. Hore-Belisha)A number of considerations entered into the decision, but, broadly speaking, the object of these restrictions was, as regards foreign loans, to strengthen the position of the sterling exchange, and as regards the optional conversion of existing loans, to prevent undue congestion in the new issue market and so facilitate the raising of new money for the expansion of business.
§ Colonel WEDGWOODWhy have facilities been given to the South African Government to borrow money at 3½ per cent, when industries in this country are prohibited from making any conversions?
§ Mr. HORE-BELISHAI think that I have already answered the right hon. and gallant Gentleman's question.
§ Colonel WEDGWOODNo. Does the Financial Secretary consider that a South African loan facilitates industry in this country?
§ Mr. SMITHERSIs it a fact that industries in this country are prevented from making conversion loans?