§ 56. Mr. Pethick-Lawrenceasked the Chancellor of the Exchequer with a view to encouraging the largest possible proportion of conversion of the 4½ per cent. Conversion Loan to the new 2 per cent. 972 Conversion Loan, what steps he proposes to take to secure a reduction in the price of day-to-day money?
§ Sir J. SimonIf the right hon. Gentleman has in mind holdings of 4½ per cent. Conversion Loan by financial houses I doubt whether the rate for day-to-day money would be the most important factor in their decision whether to convert or not. On the general question, I do not feel able to change the view of the matter which I expressed when answering a similar Question put by the right hon. Gentleman on the 12th December.
§ Mr. Pethick-LawrenceIs the right hon. Gentleman not aware that there is a considerable body of City opinion in favour of a change downward in the day-to-day rate, and that delay in bringing about a change may affect the conversion by an amount as high as £50,000,000; and in view of these facts does he not think it time to take some steps in this matter?
§ Sir J. SimonThe right hon. Gentleman may be quite sure that I am at least as attentive to this matter as anybody else. I have a great responsibility in relation to it and the answer which I have given has been given after full consideration.