HC Deb 06 October 1942 vol 383 cc1072-3
52. Mr. Graven-Ellis

asked the Chancellor of the Exchequer whether he will do without the creation of bank credits to finance the war and make people save with self-denial?

Sir K. Wood

I am afraid it is not practicable to secure self-denial by compulsion. I have often made it clear that direct investment of personal savings with the State is most advantageous. At the same time holders of bank deposits which may be borrowed by the Treasury have for the time being saved their money. The danger of savings in this form would lie in the rapid circulation of bank money resulting in higher prices. There is no present evidence that this is happening.

Mr. Craven-Ellis

Is my right hon. Friend aware that the President of the National Savings Committee made a statement to the effect that we would not require bank deposits if people would save with self-denial?

Sir K. Wood

I have not seen that statement, but I will look at it.

Sir H. Williams

Has my right hon. Friend's statement received the approval of the Archbishop of Canterbury, who is the latest expert?

Sir K. Wood

Not as yet.

54. Mr. Craven-Ellis

asked the Chancellor of the Exchequer the total of Treasury deposits provided by the banks since the introduction of this form of borrowing; and, of this sum, what amount has been converted into long-term loans at 2½ per cent. and 3 per cent., respectively?

Sir K. Wood

The gross total of Treasury Deposits made by banks to 30th September, 1942, was £2,834,000,000, £333,000,000 were repaid to cover subscriptions to 2½ per cent. National War Bonds and £123,000,000 to cover subscriptions to 3 per cent. Savings Bonds. The net total outstanding at 30th September was £760,000,000.