asked 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?

So 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.