HC Deb 06 December 1948 vol 459 c1W
Mrs. Ganley

asked the Secretary of State for Foreign Affairs whether he is aware that as a result of currency reform 70 per cent. of the previous savings of Germans have been liquidated; and whether any provision is in existence to aid those who may have contracted obligations on the strength of those savings, in anticipation of the release of those originally frozen.

Mr. Mayhew

Under the Western zone Currency Reform Laws half of all Deutschemark balances resulting from the conversion of Reichsmarks were first placed in blocked accounts, the disposal of which was to be determined within a period of 90 days. In order to reduce inflationary pressure 70 per cent. of these blocked accounts were later cancelled. I am afraid that it would have defeated the aim of the conversion to have given special aid to those who had assumed that these accounts would be entirely released and had contracted obligations on the strength of them.