§ 56. Sir Nicholas Grattan-Doyleasked the Chancellor of the Exchequer whether he will continue to borrow in order to buy and neutralise gold so as to prevent credit inflation, or whether he will propose revision of the Tripartite Agreement before the inflow of unwanted gold reaches uncontrollable dimensions?
§ Lieut.-Colonel ColvilleThere is no indication of any unhealthy credit condition at the present time, and no such condition will be allowed to develop. My right hon. Friend is not clear what revision of the Tripartite Agreement my hon. Friend has in mind, but he has no intention of departing from that Agreement.
§ Sir N. Grattan-DoyleWill my right hon. and gallant Friend convey to his right hon. Friend the extraordinary tension which exists at the present time in the country, and particularly in the City, on this question, particularly in regard to the gold scare going on in certain quarters at the present time, and is it not desirable that an early statement should be made by His Majesty's Government on the position?
§ Lieut.-Colonel ColvilleAs I said in my answer, there is at present no indication of any unhealthy credit condition, but I can assure my hon. Friend that my right hon. Friend bears all relevant factors in mind.
§ Mr. BellengerIs it not a fact that the Exchange Equalisation Fund is buying extraordinarily large amounts of gold, and is it the intention of the Government to increase that fund?
§ Lieut.-Colonel ColvilleThat is a separate question.