Cheap Capital and its Uses Mr. Runeiman, in his speech
at Lanark last. Saturday, alluded to the effects of War Loan Conversion and the lowering of the price of capital for local and industrial purposes. Some of the more reliable businesses have already been able to take advantage of the situation to convert their own fixed-interest-bearing capital, and others will undoubtedly follow their example. But Mr. Runciman did not draw one conclusion which seems necessary and obvious. With so much money lying about awaiting investment at low rates of interest, the next and the essential step in further recovery is to find means of investing it. The borrower can get money cheaply and the capital will provide work. Mr. Runeiman spoke rather slightingly and with insufficient justification about " the pains and penalties of recovery " in America. Our own Government would do well to take at least one or two leaves out of the American book, and make use of some of the available cheap capital for a guaranteed housing loan.
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