HC Deb 17 February 1921 vol 138 cc308-9W
Major KELLEY

asked the Chancellor of the Exchequer whether, in view of the distress caused among many small depositors and shareholders by the failure of Farrow's Bank, he is taking steps to repay to the liquidator moneys paid by the bank to the Inland Revenue in respect of Income Tax and Excess Profits Duty, which sums wore not actually due to revenue, and only became payable on account of fictitious profits shown in the accounts?

Mr. CHAMBERLAIN

My hon. and gallant. Friend will be aware that the affairs of this bank are now the subject of investigation by the Official Receiver in Bankruptcy, and criminal proceedings are being taken against sonic of the directors. While the case is stillsub judice. I am unable to make any statement on the subject.

Sir J. D. REES

asked the Chancellor of the Exchequer whether he is aware that a widespread belief exists that the management of Farrow's Bank was in communication with the Government some months before its suspension, so as to make the Government, so far as might be, a party to its continuing to do business after it was in fact insolvent; and whether he will make any statement on this subject?

Mr. CHAMBERLAIN

If such a belief does in fact exist, it is without foundation.