Bank Interest

Oral Answers to Questions — National Finance – in the House of Commons on 17th November 1942.

Alert me about debates like this

Photo of Mr William Craven-Ellis Mr William Craven-Ellis , Southampton

asked the Chancellor of the Exchequer whether in order to save man-power he will issue an order to compel banks to discontinue allowing interest on current account balances and deposits other than genuine savings deposits; and whether he will secure for the taxpayer the amounts thus saved by reducing the Treasury Bill rate and the rate on Treasury Deposit Receipts?

Photo of Sir Kingsley Wood Sir Kingsley Wood , Woolwich West

I am not prepared to adopt this suggestion. Taking all relevant factors into account, I think the present level of rates of interest on Treasury Bills and Treasury Deposit Receipts is a reasonable one.

Photo of Mr William Craven-Ellis Mr William Craven-Ellis , Southampton

Is my right hon. Friend aware that the Federal Reserve Bank of New York have recently reduced their rate to ½ per cent.? Why cannot the Bank of England take similar action, and thereby reduce the cost of the war to the taxpayers of this country?

Photo of Sir Kingsley Wood Sir Kingsley Wood , Woolwich West

I am aware of that; but, as my hon. Friend will appreciate, there is a considerable difference in the conditions of the two countries.

Photo of Mr William Craven-Ellis Mr William Craven-Ellis , Southampton

There is no need for a difference in the money rates.