§ Mr. Loftusasked the President of the Board of Trade whether he is aware that many wholesale merchants are adding various percentages, generally from 2 to 6 per cent., to invoice prices on account of expenditure incurred on compulsory insurance of stocks; and whether, with a view to prevent profiteering on this pretext, he will lay down any standards of charges to be added to various commodities?
Major Lloyd GeorgeI am aware of the practice referred to in the first pare of the question, but I would emphasise that the additional charges mentioned cannot be justified in regard to current 1079W sales by reference to the cost of compulsory insurance. Obviously the addition which a trader might reasonably make to the price of an article on account of the cost of insuring it against war risks varies according to the frequency with which the article is turned over, and I doubt whether it would be practicable to lay down standard rates for different commodities. I think it is fair to say, however, that for the great majority of goods which are now being sold the addition warranted by the facts of the case should be substantially less than even the lower figure of 2 per cent. mentioned in the first part of the question. I would add that some traders have informed me that they do not intend for the present to add anything to their sale prices in respect of this expense.