§ MR. J. HOWARD (Middlesex, Tottenham)I beg to ask Mr. Chancellor of the Exchequer whether, in view of the fact that 2¾ per cent. Consols are now above par, Her Majesty's Government can see their way to reduce the rate of interest now charged by the Public Works Loan Board to a rate not exceeding three per cent., with a view to the relief of Local Rates.
§ *THE CHANCELLOR OF THE EXCHEQUERThe Local Loans Fund was established by the late Chancellor of the Exchequer as a self-supporting fund. It has to pay interest at three per cent. on the stock representing the amount advanced. This stock is irredeemable till 1912. After paying this interest, together with the expenses of management and the annuity set up to make good the losses incurred in the past, these charges exhaust almost the whole amount received for interest, leaving a margin only of £8,000. It is apparent, therefore, 1345 that no reduction of the present rate of interest can be made compatible with the solvency of the fund. According to my observation, in these days the municipal authorities have very little difficulty in borrowing in the open market at a very low rate.