§ Mr. J. Wilmotasked the Chancellor of the Exchequer whether he is aware that the inadequate response of holders of Four-and-a-half per cent. Loan to the recent Two per cent. Conversion offer, was largely due to the widespread belief that the Treasury is unable or unwilling to enforce a thorough-going policy of cheap money; and whether he is in a position to reassure the House that the Government will take timely steps to restore confidence in the cheap-money policy before issuing another big loan?
§ Sir J. SimonSo far from being regarded as inadequate, the response to the Conversion offer was infact extremely satisfactory having regard to the great reduction made in the interest rate. I do not think that the House needs any further reassurance from me that the policy of His Majesty's Government continues to be one of favouring the lowest possible interest rates.