§ Of course, a great part of this local indebtedness is incurred in fulfilment of new obligations which this House thrusts on the local authorities. I think that may perhaps give us some reason to pause before we continue to place so many new obligations upon them. And it is true also that a very considerable portion of the indebtedness is invested in remunerative undertakings, or at least in undertakings which it is hoped will prove to be remunerative. That does not alter the fact that for the great mass of 556 these liabilities the resources of the rats-payers are either directly or contingently liable. Sooner or later it will be necessary to call a halt in this process of mortgaging the future. Despite the great success of the recent issue of the London County Council, there are many signs that local authorities are less welcome visitants to the money market than was the case a few years ago. Discouraged there, they naturally turn to the State to help them in their difficulties. The Local Loans Fund was established in order to give local authorities, and especially those not in a favourable position to borrow on their own credit the advantage of the superior credit of the State. But the State is entitled to discriminate between the demands which are made upon it. It is not tolerable that, after they have spoiled the money market by their own large demands, local authorities should be in a position to force the State into the money market so spoiled. In order to check that process, and in order to preserve the Local Loans Fund against loss which would have been incurred otherwise, the Treasury have already been obliged to make an all-round advance in the rates which the Public Works Loan Commissioners charge. I am considering in conjunction with my right hon. friend the President of the Local Government Board and with the Public Works Loan Commissioners, whether it may not be advisable to still further restrict these loans to those authorities who are least able to borrow upon reasonable terms for themselves, and to those purposes which this House has specially desired to encourage. In any case the State cannot continue to provide money with as lavish a hand as in recent years, now that money is dear and the Savings Banks no longer afford us as large resources as formerly.