HC Deb 15 February 1938 vol 331 c1700
47. Mr. G. Strauss

asked the Chancellor of the Exchequer whether he is aware that higher interest rates are paid by London banks on foreign short-term deposits than are paid in the other financial centres, thereby encouraging the influx of foreign currency to this country; and whether, in view of the fact that the operations of the Exchange Equalisation Fund in sterilising this influx involves heavy expense to the taxpayer, he will take steps to prevent this payment of excessive interest?

Sir J. Simon

In reply to the first part of the question, the rate of interest obtainable is not the only, or even the most important, factor in determining the international location of foreign short-term deposits at the present time. The answer to the second part of the question is in the negative.