§ 64. Mr. Boothbyasked the Chancellor of the Exchequer whether he can give an assurance that the policy of cheap money is still to be followed by His Majesty's Government; in particular, that he will take no steps to curb the increase in the number of Treasury bills necessitated by the present expenditure by premature funding operations; and that steps will be taken to ensure that the bank rate shall conform to that policy?
§ Sir J. SimonI have frequently stated the Government's general policy. While action in the matters referred to in my hon. Friend's question must depend largely on the course of events, I can assure him that I can see nothing in present conditions to suggest the need for any change in regard to the cheap money policy.
§ Mr. BoothbyHas my right hon. Friend's attention been drawn to the annual report of the Bank for International Settlements, in which the advantages of cheap money are questioned, the issue of Treasury bills is condemned and an alteration of the bank rate is recommended? Are we to take it that these views of the Bank for International Settlements are not the views of His Majesty's Government?
§ Sir J. SimonI thank my hon. Friend for calling my attention to the matter. I am afraid I have not really studied it.