§ Mr. Arbuthnotasked the Chancellor of the Exchequer what action he is taking to correct the anomaly by which the joint stock banks are discouraged, by 86W directive, from lending money for the purchase of shares, while hire-purchase finance houses can, and do, finance the purchase of shares on hire purchase.
§ Mr. ErrollThe banks have been asked, in framing their advances policy, to have regard to the guidance my right hon. Friend the Chancellor of the Exchequer gave to the Capital Issues Committee on 1st July last that borrowing intended to finance the speculative buying or holding of shares, material or real property, should be discouraged. I note that a recent scheme for the purchase of shares on hire purchase includes a provision specifically designed to prevent the use of the facilities for speculative purposes. I am glad to take this opportunity to say that I deprecate credit financing for speculative purposes.