§ 48. Mr. VIANTasked the Chancellor of the Exchequer whether his attention has been directed to the latest report of the Bank for International Settlements at Basle, wherein it is shown that between December, 1934, and December, 1935, French bankers reduced their German credits by 54.4 per cent., Dutch bankers reduced theirs by 36.6 per cent., American bankers by 14.9 per cent., and Swiss bankers by 32 per cent., whereas British credits rose by 5.4 per cent.; and whether he will take further steps to put a stop to this?
Mr. CHAMBERLAINMy attention has been drawn to the figures contained in the report of the Bank for International Settlements and to the fact that in certain quarters an inference has been founded on these figures that British bankers had increased their German credits during 1935. The Committee of British Short-Term Creditors have published a statement in the Press this morning, which shows that this inference is based on a complete misapprehension. The total British credits (both used and unused) decreased during the year 1935 by just over £1,000,000. The larger reductions in the credits of other countries are mainly due to the willingness of creditors there to accept repayment in German currency with the heavy capital loss which such repayment involves.
§ Sir JOHN WARDLAW-MILNEIs my right hon. Friend entirely satisfied with the explanation that appears in the newspapers this morning, and will he give the House any idea why even under the conditions set out in that statement, British bankers' advances have been reduced by only £1,000,000?
Mr. CHAMBERLAINI think a careful study of the statement will show why British bankers' advances have been reduced by only £1,000,000. As to whether I am satisfied with the report, I have no reason to believe that the statement made in any way misrepresents the actual fact.
§ Mr. VIANTIn view of the report that at least there has been a £2,250,000 increase of British credits to Germany, will the right hon. Gentleman give the matter further consideration?
§ Mr. GARRO JONESIs the right hon. Gentleman aware that the report of the Committee to which he has referred only covers the credits given by certain kinds of financial organisations, and is he satisfied that every kind of financial organisation which may establish these credits has come under his observation?
Mr. CHAMBERLAINIt is very difficult to deal with this subject by question and answer, because hon. Members seem determined to believe that British bankers have increased their credits to 1002 Germany, and continually make statements to that effect, and when it is proved that it is incorrect, they suggest that it is due to someone else.