HC Deb 19 November 1957 vol 578 c178
7. Mr. Roy Jenkins

asked the Chancellor of the Exchequer what action he proposes to take under Section 4 of the Bank of England Act, 1946, to safeguard the position of the depositors in the Ideal Bank, Limited, in view both of the directors' statement that they are forced, as a result of Government policy, to suspend withdrawals, and of the general loss of confidence to which this may lead.

Mr. P. Thorneycroft

None, Sir. The House will be aware that the position of the depositors in the Ideal Bank, Limited, has been fully safeguarded as a result of action taken by Barclays Bank, Limited. I am happy to say that the fears expressed in the last part of the Question have proved unfounded.

Mr. Jenkins

Whilst appreciating that events have moved a little in the way we all welcome since this Question was put down, does not the Chancellor realise that there was considerable local concern about it, and is he satisfied that no other small banks in the country are likely to find themselves in this position as a result of his policy?

Mr. Thorneycroft

I cannot answer for either small or large banks in this matter. I answer for the Exchequer. The fears which the hon. Gentleman expressed were held at one time, but I am sure that he is as glad as everybody else to see that they are unfounded.