§ 50. Mr. PETHICK-LAWRENCEasked the Chancellor of the Exchequer whether he has any statement to make with regard to the recent reduction in bank deposits with the Bank of England; and whether he can give an assurance that his policy of cheap money will be main-tained?
§ Mr. W. S. MORRISONI assume that the hon. Member has in his mind the changes in the figures in some very recent weekly returns of the Bank of England. These changes are seasonal and temporary, and have no bearing on the question of our cheap money policy which has undergone no alteration. The hon. Member will see from the returns that if bankers' deposits happen to be somewhat lower than usual, public deposits are abnormally high. That is, of course, in preparation for 2nd June, when the Treasury have to pay out a sum of considerably more than £30,000,000 in the form of a half-yearly dividend on the War Loan.
§ Mr. PETHICK-LAWRENCECan I take it that his right hon. Friend will bear in mind this whole question of cash at the Bank of England and these deposits, so that the opinion, which is widely held, as to the danger of the cheap money policy being reversed, will be definitely disposed of?
§ Mr. MORRISONCertainly; all relevant considerations will be borne in mind by my right hon. Friend in this matter. I should like to get it clear that there is no alteration in our policy of cheap money.