25. Mr. H. Wilsonasked the Chancellor of the Exchequer if he is aware of the growth, since the intensification of the credit squeeze, on 19th September, of a black market in credit facilities and loans, at extortionate rates of interest, and involving borrowing from Zurich and other financial centres; and what action he is taking in the matter.
§ Mr. P. ThorneycroftI am aware that any restriction on advances tends to encourage borrowing outside the normal banking system. I am also aware that foreign currency is once again tending to flow to London.
Mr. WilsonWhile the right hon. Gentleman can make these generalisations, may I ask whether he does not study the evidence produced, for instance, in the City column of the Manchester Guardian, which had a very clear article on this with evidence of foreign currency flowing to London to take part in this black market at rates of 12½ per cent. and 15 per cent.? Will the right hon. Gentleman deal with a scandalous black market of this kind?
§ Mr. ThorneycroftMy principal troubles lately have not been to prevent foreign currency flowing into London.