HC Deb 13 June 1939 vol 348 cc1098-101
48. Mr. Mander

asked the Chancellor of the Exchequer whether he will consider the advisability of promoting legislation to convert the Bank of England from a privately-owned body into a State institution, providing for the appointment of the governor and deputy-governor by the Government, and the setting up of an advisory council representing the Government, industry, commerce, labour, and the deposit banks?

Sir J. Simon

No, Sir.

Mr. Mander

Does the Chancellor of the Exchequer not think that recent events have shown the great importance of closer association between the Government and the Bank of England, in fact as well as in theory; and is it not a fact that legislation on those lines has been recommended by Members of all parties?

Sir J. Simon

The answer to the original question is still "No, Sir."

Mr. Davidson

Does the right hon. Gentleman recognise that only the retention of a private banking system would allow assets to be sent to a country to oppose which we are conscripting the youth of the country?

57. Mr. Bellenger

asked the Chancellor of the Exchequer whether, as it is not in the national interest for shares in the Bank of England to be held by foreign investors, he will consider introducing legislation to prevent this?

Sir J. Simon

No, Sir. I do not think that there is any evidence that such legislation is needed.

Mr. Bellenger

Is not the evidence already available, namely, that a holding of £500 of stock or interest in the Bank of England entitles the holder to a vote; and is it not conceivable that considerable power might thereby be placed in foreign hands?

Sir J. Simon

What I said was that I do not think that at the moment legislation, is needed. My reason for saying that is that the amount of these holdings is believed to be quite trifling, and that in any case each holder has only one vote, whatever the size of his holding.

Mr. Mander

Does not this show that it is inadvisable that the Bank of England should continue in private hands?

66. Mr. Arthur Henderson

asked the Chancellor of the Exchequer to what extent co-operation takes place and con tact is maintained between the Treasury and the Bank of England in financial and economic matters affecting the national interests?

Sir J. Simon

In all necessary and proper cases, there is full co-operation and contact between the Treasury and the Bank of England.

Mr. Henderson

Is it a fact that His Majesty's Government were informed of the proposal of the Bank for International Settlements to transport this gold to the German Government from French Government sources? If so, does the right hon. Gentleman not think it undesirable that such information should be received from abroad, and not from the directors of the Bank of England?

Sir J. Simon

I do not think that that was the source. What I stated was that information reached us from a Continental source that the German authorities were seeking to get possession of some of this Czech gold.

Mr. Henderson

Does the right hon. Gentleman not think it undesirable, from whatever Continental source the information was received, that such information was not first received from the Bank of England directors?

Sir J. Simon

In fairness to all concerned, I must point out that I have no reason to suppose that the directors of the Bank of England, would be the persons to know of it first.

Mr. Pethick-Lawrence

How does the right hon. Gentleman reconcile the statement that the. Bank of England is in accord on matters of foreign policy with the Government with his ignorance of what the Governor of the Bank of England did in his capacity as a representative of the Bank of England on the Bank for International Settlements, and with the part that he played there in that matter?

Sir J. Simon

I think that this matter has been very fully explained. The reason some hon. Members do not accept the explanation is that they seek to disagree with what has happened. Surely it is quite plain to everybody that the British Government cannot answer for the Bank for International Settlements. It has been made abundantly clear that the demand made by the Bank for International Settlements on the Bank of Eng land was one that had to be met.

Mr. Pethick-Lawrence

The right hon. Gentleman is seeking to evade the issue. The question is what action the representatives of the Bank of England took on the directorate of the Bank for International Settlements. What I am asking is, how he reconciles the attitude that they took with the statement that the Bank of England pursues a line in matters of foreign policy which is in accord with the policy of His Majesty's Government?

Sir J. Simon

I think the explanation is very plain. I do not think that I or the British Government ought to be held responsible for the action of the Bank for International Settlements. I cannot agree that financial and economic matters affecting the national interest are being dealt with without contact between the Treasury and the Bank of England.

Mr. Pethick-Lawrence

The right hon. Gentleman said to me last Thursday that in matters of foreign policy the directors of the Bank of England were in accord with His Majesty's Government. I am asking how he reconciles that with his statement.

Mr. Speaker

We have already had two or three Debates on this subject, and we cannot have another one at Question Time.