HC Deb 11 July 1944 vol 401 c1573
38. Mr. Stokes

asked the Chancellor of the Exchequer whether, in view of His Majesty's Government's declared policy to revert eventually to the system of fluctuating short-term interest rates, he will give an assurance that it is not his intention to convert, before that change of policy is effected, the Treasury's short-term indebtedness into long-term loans bearing higher rate of interest.

The Chancellor of the Exchequer (Sir John Anderson)

As explained in my reply on 6th July to two questions by my hon. Friend the Member for Southampton (Mr. Craven Ellis), there is no such declared policy. In any case, it would be imprudent to start making declarations now as to the policy likely to be followed in regard to the conversion of floating debt.

Mr. Stokes

That being so, does not the Chancellor think it most unwise to allow the banks to continue to divert their Treasury deposit receipts into long-term loans bearing higher rate of interest?

Sir J. Anderson

No, Sir, I think it is a most prudent course.

Mr. Stokes

In view of the most unsatisfactory nature of the reply, and other replies I have received lately from the Chancellor, I beg to give notice that I will raise this matter on the Adjournment at the earliest possible opportunity.

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