Mr. De la Bèreasked the Chancellor of the Exchequer (1) whether it is the intention of the Government to keep money cheap by various methods and at the same time to attempt to curb speculation;
(2) whether he can give some assurance to the House that the Government's finance policy, which tends to make cheap money for speculators in commodities, will not entail a rise in the price of food for the people and the cost of living?
§ Lieut.-Colonel ColvilleMy hon. Friend appears to misapprehend the purpose of the Government's policy; cheap630W money is not an object in itself, but a means adopted for securing the improvement of trade activity and employment. My right hon. Friend is satisfied that the policy actually followed has given a maximum stimulus to economic recovery in the United Kingdom and the Empire with a minimum of undesirable repercussions. I cannot make any statement as to the future, since the measures to be taken at any time will depend on the course of events, but I can assure my hon. Friend that my right hon. Friend the Chancellor of the Exchequer will continue to follow developments with close attention as he has hitherto done.
Mr. De la Bèreasked the Chancellor of the Exchequer whether he can give an assurance that the Government's policy of restriction of the use of money in this country will not lead to a sudden and uncontrolled rise in money rates; and whether, as a free money market provides the best and most constant check, he will aim at maintaining a free money market in the best interests of this country?
§ Lieut.-Colonel ColvilleThere is no restriction on the use of money in this country by the Government. If my hon. Friend has in mind the restriction on the raising of capital for investment abroad, there is no reason why that should lead to a sudden rise in interest rates. The restriction has always been applied with a careful regard to circumstances.