§ 47. Mr. Craven-Ellis
asked the Chancellor of the Exchequer what advantage is gained by this country maintaining the official rate of the sterling-dollar exchange at 4.03 when sterling is quoted in New York at 3.76?
§ The Chancellor of the Exchequer (Sir John Simon)
I would refer the hon. Member to the reply given to the right hon. Gentleman the Member for Newcastle-under-Lyme (Colonel Wedgwood) on 26th September. The official rate of the sterling-dollar exchange is that at which our imports are paid for and a depreciation in that rate must tend to involve a further rise in the cost of living.
§ Colonel Wedgwood
Is not this a penalising tax upon our exports from this country to the United States of America?