§ 46. Mr. D. GRENFELLasked the Chancellor of the Exchequer whether he intends to take any action regarding the loss of confidence in the City of London due to recent commodity speculations?
§ Mr. COOPERIn view of the prompt measures taken in the City to minimise the effects of the recent commodity speculations, I do not think it would be correct to ascribe to these operations the movements of securities to which I presume the hon. Member refers. As to what further action, if any, should be taken, I understand the position to be that a petition has already been made to the Court for the compulsory winding-up of James and Shakespeare Limited, the company which was specially associated with the recent transactions. The petition is to be heard within a few days, and on its being granted the Official Receiver will 27 be required, in the discharge of the duties specifically laid upon him by Section 182 of the Companies Act, 1929, to make full enquiry into the causes of the failure, and to report to the Court whether in his opinion further inquiry is desirable into the circumstances attending the promotion of the company and the conduct of its business. The section further provides that the Official Receiver may also, if he thinks fit, make a further report as to whether in his opinion any fraud has been committed by any person in the promotion or formation of the company, or by any director or other officer of the company in relation to the company since the formation thereof, and on any other matters which in his opinion it is desirable to bring to the notice of the Court. The House will, therefore, see that the existing law makes suitable provision for judical inquiry into the circumstances attending this class of case; and His Majesty's Government propose to await the result of the statutory inquiry or inquiries before considering the matter further.
§ Mr. GRENFELLIs the hon. Member satisfied that the inquiry will be pursued as far as is necessary to allay public opinion, or general opinion in the City, and is he aware that already shareholders who have lost considerably by these transactions in connection with James and Shakespeare make the allegation freely that their interests in the firm were confined to the business in tin and not to the speculations in pepper, and that to that extent their investments in the company have been based upon fraudulent representations? Having regard to the necessity of giving confidence in the City and to the general public in the country, who are much concerned about the character of these transactions, will the inquiry be thorough?
§ Mr. COOPERI think my answer has replied to all the points that the hon. Member has raised.
§ Sir WILLIAM DAVISONHas not the loss of confidence in the City been due not so much to the recent commodity speculations as to the fear of the City that circumstances that have arisen might mean the return of a Socialist Government?
§ Mr. BRACKENWill my hon. Friend also consider the desirability of holding an inquiry into the wild speculations in Mincing Lane in commodities, which have inflicted immense losses upon the Cooperative Wholesale Society?
§ Mr. GRENFELLWill the hon. Member inform the House whether it is the case that a very large number of the leading figures in joint stock banking were involved in this company and whether it is not in the public interest that that should definitely be made known.