§ 48. Mr. Stokesasked the Chancellor of the Exchequer whether he will inform the House concerning the circumstances in which a monetary stringency was allowed to develop in the money market towards the end of August; whether he can assure the House that the stringency did not indicate any change in the Government's declared cheap money policy; and whether he will take steps to prevent the recurrence of such stringency?
§ Sir K. WoodThe exceptional position which occurred in the money market 458 towards the end of August was largely due, I understand, to the large volume of subscriptions received by the Government during the closing days of the National War Bonds issue, coupled with seasonal currency demands and end-of-month requirements. There is no change in the Government's cheap money policy, which remains entirely unaffected by temporary fluctuations in the volume of short-term funds, and any steps in support of this policy will be taken as and when required.
§ Mr. StokesDoes the right hon. Gentleman appreciate that events of this kind are apt to make people lose confidence in the intention of the Government to maintain cheap rates, and will he give the House an assurance that now that Mr. Montagu Norman has reappointed himself Governor of the Bank of England he will not be allowed to monkey with the rates?