HC Deb 04 October 1944 vol 403 cc959-60W
Major Nield

asked the Chancellor of the Exchequer upon what principles the existing rates of exchange for sterling in France and Belgium were based; and if he is aware of the feeling among men serving in those countries that, with prices as they are, purchasing power is unduly restricted.

Sir J. Anderson

The rates of exchange were proposed by the respective Allied authorities after full consideration of all the relevant data, and accepted by His Majesty's Government and by the Government of the United States of America. I am aware that prices are high in these countries, but every endeavour is made to relieve serving men of the necessity of buying in a scarcity market by the provision of canteens, clubs and hostels where they can generally buy at English prices converted into francs at the same rate as their pay is converted. To give encouragement to buy in the civil market by the provision of greater spending power would merely increase prices even more, and would tend to defeat one of the main fiscal objects of the Allied authorities, which is to control inflation.