HC Deb 30 November 1939 vol 355 cc261-2W
Mr. Price

asked the Chancellor of the Exchequer why the holders of American dollar securities in this country, if they sell those securities, may not reinvest the proceeds out there in similar securities; and what advantage is gained to the national interests by this regulation?

Sir J. Simon

Under the Defence (Finance) Regulations, every resident in the United Kingdom becoming entitled to sell dollars (or other specified currencies) must offer them for sale to the Treasury. This provision obviously applies to dollars derived from the sale of American securities (for which ťhe required permission to sell is readily obtainable through the Bank of England) as well as to receipts obtained from exports or otherwise. It is not in the national interest to permit holders of specified currencies, which are required for expenditure essential to the prosecution of the war, to retain them abroad for investment or other purposes.