HC Deb 24 October 1939 vol 352 cc1198-9
55. Mr. Craven-Ellis

asked the Chancellor of the Exchequer whether he is aware that the continued high level of the Bank Rate is causing grave concern in the minds of all sections of the community because they fear it will result in the financing of the war imposing a crushing burden of debt on the country; and will he take steps to restore to Parliament the prerogative of creating the money necessary to finance the war in the national interest?

Captain Crookshank

I would refer my hon. Friend to the statement made by my right hon. Friend on the subject of the Bank Rate in the Debate on the War Budget and in particular to his assurance that it was the Government's policy to borrow from the genuine savings of the people at the lowest rate that we can. If the suggestion in the second part of my hon. Friend's question is that our note circulation should be made by the Treasury and not by the Bank of England, my right hon. Friend does not think that any advantage would be gained by such a change.

Mr. Craven-Ellis

Will the right hon. and gallant Gentleman say why the Government have taken no steps to control the most important of all commodities— money? [HON. MEMBERS: "Answer!"] On a point of Order, this is a very important matter. At the moment we are paying 150 per cent. more for Treasury bills than we did on 19th August and why is such profiteering allowed?

Mr. Speaker

That is not a point of Order.

Mr. Buchanan

Is it not possible to get an answer to a supplementary question?

Captain Crookshank

I understood that the hon. Member was putting a point of Order. If I may, in spite of that, give him an answer, it would be to this effect, that if he will study the statement which my right hon. Friend the Chancellor of the Exchequer made on the subject of the Bank Rate—if that is what he has in mind—he will find there the explanation of the Government's action in this matter.

Mr. Craven-Ellis

Having regard to the unsatisfactory nature of the reply I beg to give notice that I shall raise this subject on the Adjournment.

Mr. John Wilmot

May I be allowed to put a supplementary question? Is the right hon. and gallant Member aware that there is a very widespread feeling among the industrial and commercial community that the Bank Rate at the present juncture is too high, and will he take advice from other banking interests?

Mr. Speaker

That is another question.