HC Deb 12 December 1939 vol 355 cc1021-2
58. Mr. Pethick-Lawrence

asked 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. Simon

The question of the rate to be charged for call money by the London Clearing Banks to the Money Market is one which falls to be decided by those banks themselves in the light of current monetary and commercial conditions.

Mr. Pethick-Lawrence

Is 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. Simon

I do not think that that is the whole situation. There are a number of factors which enter into this question.

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