HC Deb 05 September 1940 vol 365 cc13-4
21. Commander Locker-Lampson

asked the Chancellor of the Exchequer whether he will introduce a moratorium now to relieve, in particular, the overdrafts of small depositors which are being called in by the banks?

Sir K. Wood

On the question of a moratorium, I would refer my hon. and gallant Friend to the answer which my right hon. and learned Friend the Attorney-General gave him on 25th June, 1940. I have made careful inquiries into the suggestion that the banks are calling in the overdrafts of small customers, and as a result I am satisfied that customers who are in difficulties through no fault of their own are receiving sympathetic consideration by the banks.

Commander Locker-Lampson

Did not the absence of a moratorium on the outbreak of the war force small and other investors to liquidate their securities, which were forced on to the market and bought up by waiting dealers at a grave decrease in value, to be sold later at a high price, while the original owners were ruined? Can we have an inquiry into this?

Sir K. Wood

I will, if my hon. Friend has any particular case.

Commander Locker-Lampson

May we have a Debate and a deputation?

Sir K. Wood

Let us have the papers first.

Mr. De la Bère

Banks should not be allowed to liquidate securities as they are doing. Have they not done this at uneconomic prices, which has caused great distress, and why has there not been some finished thought? There has been too much unfinished thought.

Sir K. Wood

Perhaps my hon. Friend will make a contribution by sending me some of the cases.

Mr. De la Bère

Perhaps my right hon. Friend will have a word with me afterwards.