§ Mr. Woodburnasked the Chancellor of the Exchequer whether the Government has taken or will take steps to set a maximum to the expansion of credit by joint stock banks, in order to prevent the vicious spiral by which advances to the Government by the Bank of England become in turn the cash basis on which such joint stock banks may create still further advances for investment by themselves or their clients in Government loans?
§ Captain CrookshankThe avoidance of an inflationary rise of prices is one of the main considerations which guide our monetary policy. My hon. Friend will appreciate that the amount of credit which can he given by banks at any particular time without incurring the risks to which he refers depends on a variety of circumstances. My right hon. Friend will, of course, bear in mind the considerations to which my hon. Friend refers, but it is not the policy of the Government that subscriptions to war loans should be financed by borrowing.