§ 68. Mr. G. Straussasked the Chancellor of the Exchequer whether he is aware that the payment of unnecessarily high interest rates on the substantial foreign deposits held in London increases the amount of invisible imports represented by earnings on foreign capital invested in Great Britain; and whether, in view of the growing adverse trade balance, he will take steps to prevent this payment of excessive interest?
§ Sir J. SimonI do not regard the particular considerations referred to in the first part of the question as a decisive factor in our balance of payments. The answer to the second part of the question is in the negative. The complicated questions involved are rather a matter for study by the city authorities.
§ Mr. StraussEven if this factor is not a decisive one, is the right hon. Gentleman aware that the policy of the banks is directly contrary to the national interest at the moment?
§ Sir J. SimonI do not think that that is a matter of deliberate policy with the banks. The question arises in connection with a large number of different kinds of institutions in the city. It is, as I have said, a complicated matter which seems to me to be one that is suitable for study by the city authorities.
§ Mr. StraussI beg to give notice that I shall raise this matter on the Adjournment.