23 NOVEMBER 1929, Page 4

The Conversion Loan In the House of Commons on Monday

Mr. Snowden announced that the result of the 5 per cent. Conversion Loan was one of the most successful conversions of recent years. The total applications had amounted to £238,000,000. It must not be supposed, of course, that anything like all this is new money. Mr. Snowden's critics, wise after the event, can say without fear of contradiction that the terms he offered were too attractive, but the point is that he could not afford to risk failure. He was faced not only with a high Bank Rate but with the collapse of the New York Stock Exchange. The natural expectation now is that the new loan will go to a premium, but it will quickly recede to a discount if the Government's expenditure should threaten a Budget' deficit. * * * *