§ 65. Mr. Lipson
asked the Chancellor of the Exchequer what is the present daily expenditure for war purposes; what financial limit has been placed on expenditure for the war effort with a view to avoiding the danger of inflation; and when was it [...]nposed.
§ The Chancellor of the Exchequer (Sir John Anderson)
During recent weeks Vote of Credit expenditure has averaged about £15,000,000 a day. At this time of the year it is normally higher than usual and the average daily rate over this financial year to date has been about £13,500,000. In reply to the second and third parts of the Question, no financial limit has ever been imposed on war expenditure; but the financial and economic implications of increases in that expenditure have always had to be carefully weighed.
§ Mr. Lipson
Does not my right hon. Friend's statement that no financial limit is placed on war expenditure make nonsense of the argument that increased pay and allowances to our Service men would cause inflation?
§ Mr. Stokes
Does the Chancellor mean that there is no restriction of expenditure an account of the money in circulation, and, if so, can he, at a future date, tell the House how much new money has been created?