§ 39. Mr. HAMMERSLEYasked the Chancellor of the Exchequer if he will propose some practical policy to ensure the use of cheap money, the provision of which he has advocated to the central banks of the world?
§ Mr. HORE-BELISHAI would refer my hon. Friend to the statement which my right hon. Friend made before the Monetary and Economic Conference on 14th June, which has been published as Command Paper 4357.
§ Mr. HAMMERSLEYAm I to take it that the Chancellor of the Exchequer would view with approval the expenditure of public money provided it was of a capital character and likely in the future to be remunerative?
§ Mr. HORE-BELISHAMy hon. Friend's question is susceptible of answer neither in the affirmative nor the negative.
§ 40. Mr. THORNEasked the Chancellor of the Exchequer if he can state the object the Government has in view by keeping up the French exchange rate; the amount of French francs purchased by the Government during the two weeks ending 28th June; and the amount of gold purchased by the Government through the Exchange Equalisation Account?
§ 42 and 43. Mr. MABANEasked the Chancellor of the Exchequer (1) whether he can assure the House that no agreement will be made to link sterling with the currencies of the gold-standard cur- 20 rencies, namely France, Italy, Holland, Switzerland and Belgium, without the prior consent of the House of Commons;
(2) whether, in view of the fact that the Finance Act of 1932 declares the purpose of the Exchange Equalisation Account to be the prevention of undue fluctuations in the exchange value of sterling, his attention has been called to the fact that the exchange value of sterling is fluctuating unduly in terms of the dollar; and what steps he proposes to take to prevent this undue fluctuation?
§ Mr. HORE-BELISHAFor reasons of public policy, as has frequently been stated in the House, particulars of the transactions on the Exchange Equalisation Account cannot be published. As regards the broad objectives of policy my right hon. Friend desires me to refer the bon. Members to my reply to a question by the hon. Member for Huddersfield (Mr. Mabane) on 26th June and to say that he regrets that he is not in a position to add anything to that answer.
§ Mr. THORNEIs it not a fact that you are using this fund to keep up the French exchange for the purpose of assisting a group of bankers who lent £30,000,000 to France to the detriment of our exporters to France?
§ Mr. HORE-BELISHAI am sorry I can accept neither the bon. Member's premises nor his conclusions.
§ Mr. MABANEI do not think my question was answered. There is no reference to the Exchange Equalisation Fund in it.
§ Mr. HORE-BELISHAThe answer was made by implication in the reply to which I have referred.
§ Mr. THORNEIs it not a fact that you used the Exchange Equalisation Fund for the purpose of regulating sterling and the dollar and that you have made a bad job of it and have now given it up altogether?