§ 53. Mr. Stokesasked the Chancellor of the Exchequer whether he is aware that the total deposits held by the clearing banks on 30th June, 1940, amounted to £2,469,000,000, and that this sum had increased by 31st December, 1942, to £3,629,000,000; and what profit accrues to the Treasury from these increased deposits?
§ Sir K. WoodThe answer to the first part of the Question is in the affirmative. In reply to the second part, any profit made by the banks from the use of the funds at their disposal is chargeable to tax.
§ Mr. StokesDoes the right hon. Gentleman realise that the difference of £1,200,000,000 represented by these figures is new money created by the banks and that, as he has just explained to the hon. Member for Evesham (Mr. De la Bère), they can, of course, convert all that money into long-distance loans, at 2½ per cent., to their own advantage of £30,000,000 a year, and to the disadvantage of the country? Why does he not take steps through the Treasury to deal with that situation?
§ Sir K. WoodThe hon. Member must realise that he and I will never agree on this matter.
§ Mr. StokesDoes not the right hon. Gentleman realise that I am correct and that he is wrong?