§ 61. Sir N. Grattan-Doyleasked the Chancellor of the Exchequer whether he is aware that plentiful cheap money has not counteracted the new trade depression in America, and that the theory of managed cheap money has failed as a remedy in America; and will he have prepared, as an alternative to relying upon the theory of managed cheap money, another corrective designed to combat the threat of trade recession here when money here is so cheap that it cannot be made cheaper to operate as a stimulus to trade?
§ Lieut.-Colonel ColvilleNo, Sir. As regards the first part of the question, it would be wrong to conclude that conditions in the United States are other than greatly better than those four years ago. In this country the policy of cheap money has greatly contributed to the restoration of prosperity, and the measures of the Government in many other spheres have been directed, and will continue to be directed, to the maintenance of business confidence.
Mr. De la BèreIf money is so cheap, why cannot the Government lend money to agriculture at 2½ per cent.?
§ Mr. BellengerIs the right hon. and gallant Gentleman aware that it is not cheap money that is causing the trade depression in America, but that there are other factors?
§ Lieut.-Colonel ColvilleYes, Sir; there are other causes.
§ Mr. MacLarenWhat are they?