HC Deb 02 March 1933 vol 275 cc552-3
72. Mr. MABANE

asked the Chancellor of the Exchequer whether, in order to prevent the Government's policy of scientific expansion being frustrated by a further fall in the internal price level, action is to be taken to prevent such a fall; and whether he can indicate the nature of that action?

Mr. CHAMBERLAIN

It is impossible to isolate sterling prices completely from the effect of falling world prices, but, although world prices have dropped by some 20 per cent. during the last 18 months, the sterling price level has remained remarkably stable. I am not without hope that the policy of cheap money and plentiful credit which has brought about this result may, if continued, lead to an increase of prices, and this process will undoubtedly be greatly facilitated if international agreement can be obtained on some of the present world problems.

Mr. MAXTON

Could the right hon. Gentleman tell us if there is any money left in the Exchange Equalisation Fund?

Mr. CHAMBERLAIN

I do not think it would be desirable to disclose particulars about the Exchange Equalisation Fund.

Mr. COCKS

Could the right hon. Gentleman explain what exactly "scientific" expansion is?

Mr. CHAMBERLAIN

That inquiry had better be addressed to the hon. Member who put the question.

Mr. MABANE

Will the right hon. Gentleman treat this matter as one of grave urgency, in view of the continued fall since the Ottawa declaration in favour of raising the price level; and is he aware that many Members of the House attribute that continued fall to the policy of restriction and deflation pursued by the Bank of England?