§ 61. Mr. Craven-Ellisasked the Chancellor of the Exchequer whether in order to save man-power he will issue an order to compel banks to discontinue allowing interest on current account balances and deposits other than genuine savings deposits; and whether he will secure for the taxpayer the amounts thus saved by reducing the Treasury Bill rate and the rate on Treasury Deposit Receipts?
§ Sir K. WoodI am not prepared to adopt this suggestion. Taking all relevant factors into account, I think the present level of rates of interest on Treasury Bills and Treasury Deposit Receipts is a reasonable one.
§ Mr. Craven-EllisIs my right hon. Friend aware that the Federal Reserve Bank of New York have recently reduced their rate to ½ per cent.? Why cannot the Bank of England take similar action, and thereby reduce the cost of the war to the taxpayers of this country?
§ Sir K. WoodI am aware of that; but, as my hon. Friend will appreciate, there is a considerable difference in the conditions of the two countries.
§ Mr. Craven-EllisThere is no need for a difference in the money rates.