HC Deb 02 June 1938 vol 336 cc2230-1
63 Mr. Craven-Ellis

asked the Chancellor of the Exchequer whether, as the increasing adverse balance of trade against Great Britain and the present favourable balance of trade accruing to the United States indicates that the current rate of exchange over-values sterling in relation to the dollar, he will undertake to consider the present disparity in the terms of trade between the two countries when determining the rate of exchange through the Exchange Equalisation Account?

Captain Wallace

My hon. Friend is under a misapprehension in thinking that it is the function of the Exchange Equalisation Account to determine the exchange value of sterling. As stated in my right hon. Friend's answer to him on 8th February last, its purpose is to check undue fluctuations therein in accordance with Section 24 (3) of the Finance Act, 1932.

Mr. Mabane

Is my right hon. and gallant Friend aware of the growing feeling among industrialists that the present difficulties of trade are due to the fact that the £ is over-valued in the markets of the world?