HC Deb 17 November 1955 vol 546 cc757-8
13. Mr. Grimond

asked the Chancellor of the Exchequer what discussions he has had with the banks, and what advice he has issued to them, on the variation of their cash ratios as part of the credit squeeze.

Sir E. Boyle

The answer to both parts of the Question is "None, Sir."

Mr. Grimond

Has the Minister looked into the possibility of varying the liquidity ratio as part of the Government's financial measures?

Sir E. Boyle

That is another question. I have been asked what discussions my right hon. Friend has had with the banks, and the answer to that is as I gave it.

Mr. H. Wilson

Is the Economic Secretary aware that the credit squeeze is working in a most extraordinary manner, and in cases of which I have given details to the House, valuable export business is being endangered because the banks have felt that they were unable to increase financial facilities for exports? Is he aware that even when the businessmen concerned have consulted his Department and the Board of Trade, they have been told that the Chancellor has not laid down any system of priorities in favour of export as against essential home business and that it is all left to the banks?

Sir E. Boyle

That question raises much wider issues than the Question on the Order Paper.

Mr. Gaitskell

In view of the well-known fact that small firms are being harshly treated by the credit squeeze, will the hon. Gentleman give specific instructions to the banks to ask them not to drive small firms out of business?

Sir E. Boyle

That raises another question. We cannot debate the credit squeeze in answer to this Question.