HC Deb 26 July 1938 vol 338 cc2903-4
53. Mr. G. Strauss

asked the Chancellor of the Exchequer whether he is aware that the raising of the ban on the lending by banks against gold has resulted in considerable gold hoarding and gold speculation; and whether he will consult with the Bank of England with a view to reimposing the ban?

Sir J. Simon

I am not aware that advances against gold are causing any disturbance in the market, and I see no occasion to reimpose the restriction.

Mr. Strauss

Is the right hon. Gentleman not aware that recent disturbances of the movements in regard to gold have been largely caused by the removal of this ban, which was originally imposed by the Bank of England at the suggestion of the Treasury, and is it not desirable to reimpose it?

Sir J. Simon

I think that if the hon. Member will refer to the answer which I have given, he will see that my information is that there is no reason to think that advances against gold are causing any disturbance in the market.