§ 47. Mr. Stokesasked the Chancellor of the Exchequer by what means the Public Works Loans Board raises the money to lend to public authorities; and what is the average rate of interest charged on the loans which, on 31st March, 1939, totalled £311,021,449 19s. Id.?
§ The Chancellor of the Exchequer (Sir John Simon)The moneys lent by the Public Works Loan Commissioners are provided by advances made to them from the Local Loans Fund. Apart from repayments of the principal of existing loans, that fund is financed by the issue of stock. The average rate of interest charged (calculated on the amount out standing on 31st March,1939), is £4 15s. 10d. percent. A good deal more than half of these loans were made before the fall of interest rates in 1932, and the hon. Member will realise that the bulk of this money has been expended on schemes that earn some form of subsidy.
§ Mr. StokesWill the Chancellor of the Exchequer say why local authorities should not be allowed to raise their own loans and issue their own paper money as in other countries, and so avoid the moneylenders' racket?
§ Sir J. SimonThat subject has been fully discussed on a great many occasions, and I will give the hon. Gentle man references if I may.