HC Deb 09 September 1941 vol 374 cc32-3
58. Mr. A. Edwards

asked the Chancellor of the Exchequer whether his attention has been drawn to the latest statement of Lord Kindersley discouraging the public against lending money to the Government by proxy, that is, through the banks; and which form of borrowing is cheaper for the Government and the cost in each case?

Sir K. Wood

The answer to the first part of the Question is in the affirmative. The cost of Government borrowing, whether from the banks or from the public, depends, of course, on the period of the borrowing. While short-term loans, for which the Government relies mainly on the banks, are the cheapest, it is in the best interests of the State that it should as far as possible borrow by methods which relieve it of the liability to repay money at short notice. The public should, there fore, be encouraged to invest their avail able resources in the longer-term war issues. Such action is also helpful in restricting unnecessary spending.

Mr. Edwards

Will the Chancellor answer the last part of the Question?

Sir K. Wood

I do not think I could do that, but I will look into the matter again and see.

Mr. Stokes

Is the Chancellor aware that Lord Kindersley has said that the most patriotic thing for anyone to do is to put their money on deposit at the bank?

Sir K. Wood

I think that that statement would have to be qualified.