§ 58. Mr. Pethick-Lawrenceasked the Chancellor of the Exchequer whether, in view of the reduction of the Bank of England rate to 2 per cent. and of the Joint Stock Banks rate of interest on deposit to half per cent., he will take steps to see that the rates for call money are also reduced correspondingly to the pre-war figure?
§ Sir J. SimonThe question of the rate to be charged for call money by the London Clearing Banks to the Money 1022 Market is one which falls to be decided by those banks themselves in the light of current monetary and commercial conditions.
§ Mr. Pethick-LawrenceIs the Chancellor prepared to connive in the rate being kept at a figure which greatly increases the amount of money paid out of the public exchequer in respect of Treasury bills?
§ Sir J. SimonI do not think that that is the whole situation. There are a number of factors which enter into this question.