§ Mr. GOULDasked the Chancellor of the Exchequer whether, taking into consideration the depressed condition of industry throughout the country, he will see his way to recommend a reduction in the bank rate, thereby providing cheaper money for industrial purposes; and whether the continuous borrowing of the Government necessitates a continuance of the present high rate?
Mr. CHAMBERLAINThe control of the bank rate rests with the Bank of England. As regards the second part of the question, Government borrowings788W have for the last year been solely for the purpose of meeting maturing debt, and the rate of interest is that which is found necessary to secure the renewal of so much of the maturing debt as cannot be met out of surplus revenue, without more than temporary resort to methods involving new credit manufacture by the Government. Borrowing by Government and other public authorities is, of course, one of the factors making for high money rates, but the originating cause of the present high rates is the destruction of capital during the War, and the financial expedients to which the War forced our own and other nations to resort.