§ Major ELLIOT
My hon. Friend will recollect that, in announcing the War Loan Conversion Scheme on the 30th June, my right hon. Friend expressed his confidence that anyone who might be contemplating the issue of new capital in the market in the near future would forbear from coming forward for a few weeks while the conversion operation was proceeding. It would be contrary to the policy thus enunciated to take any step which might encourage local authorities in the near future either to approach the Public Works Loan Commissioners with requests for advances from the Local Loans Fund or to make a new issue of housing bonds. Accordingly, my right hon. Friend does not propose to make any change in the rate of interest at present, but the matter will certainly be reconsidered as soon as conditions permit.