44. Mr. De la Bèreasked the Chancellor of the Exchequer whether he will publish a memorandum setting out the powers conferred on the banks for the creation of credits throughout the country as the impression that the banks are able to create costless credit is hindering our war effort?
§ Sir K. WoodMy hon. Friend's Question is, I think, based on a misapprehension, for no powers of the kind suggested have been conferred on the banks. Any impression such as that to which he refers in the latter part of his Question is, of course, erroneous.
Mr. De la BèreMy right hon. Friend would not disagree with me that purchasing power, newly created to finance the community and based on the Government credit, should not bear more than the most nominal rate of interest?
§ Sir K. WoodI do not disagree with my hon. Friend any more than I can help.
Mr. De la BèreThen my right hon. Friend does agree that it should not bear more than a nominal rate of interest?
§ Sir K. WoodNot necessarily.
§ Mr. Craven-EllisIn view of the widespread misinformed opinion about the financial system which is undermining the capitalist system, will my right hon. 1225 Friend call the Governor of the Bank of England to the Bar of the House to make a statement?
§ Sir K. WoodNo, Sir; I think I should prefer to rest on the pamphlet which my hon. Friend has issued on the subject.