Banking System.

Oral Answers to Questions — National Finance. – in the House of Commons on 9th July 1942.

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Photo of Mr John Tinker Mr John Tinker , Leigh

asked the Chancellor of the Exchequer the total annual cost to the State in using the Bank of England as a means of monetary exchange; and whether, as a better and more economical method, he will take over and control the whole banking system in the country.

Photo of Sir Kingsley Wood Sir Kingsley Wood , Woolwich West

I am not clear what precise services of the Bank of England my hon. Friend is referring to in the first part of his Question. I assume he is aware that the profits of the Note Issue, now very substantial, enure to the Treasury. The answer to the second part of his Question is in the negative.

Photo of Mr John Tinker Mr John Tinker , Leigh

Do not we deal with the Bank of England when we want some credit, and does it not cost some money to get it? Surely we are entitled to know a little more about transactions between the Government and the Bank of England? Are they secret?

Photo of Sir Kingsley Wood Sir Kingsley Wood , Woolwich West

I was not clear what my hon. Friend had in mind, and I will examine it and see whether I can give him some further information.

Photo of Mr Emanuel Shinwell Mr Emanuel Shinwell , Seaham

Can we have an assurance that it is no part of the policy of the Government to deal with established institutions?

Photo of Mr John Tinker Mr John Tinker , Leigh

If I put a Question down, will the right hon. Gentleman give me an answer?

Photo of Sir Kingsley Wood Sir Kingsley Wood , Woolwich West

Perhaps my hon. Friend will allow me to communicate with him.

Photo of Mr Herbert Williams Mr Herbert Williams , Croydon South

Is it not a fact that under the Currency and Banknote Act, 1928, the whole of the profits of the Issue Department of the Bank of England are paid into the Exchequer?

Photo of Sir Kingsley Wood Sir Kingsley Wood , Woolwich West

I ventured to refer to that in my answer.