Another Conversion Loan The Chancellor of the Exchequer has lost
no time in carrying out the new conversion scheme to which he referred at last week's Conservative Conference. It is modest as compared with the conversion of nearly £2,000,000,000 of 5 per cent. War Loan, since it only concerns the 4i per cent. Treasury Bonds to the value of £140,000,000, due for repayment on December 1st. But the operation is none the less remarkable, for the new Bonds for £150,000,000 that were offered on Tuesday and subscribed in half an hour will bear interest at only 2 per cent., though a bonus of 10s. per cent. is offered to holders who convert. The extremely low rate of interest is gratify- ing to the Treasury, and implies a further saving of £3,000,000 or so to the taxpayer. But it is painfully significant, too, of the general lack of confidence that makes money cheap. If only the millions that are lying idle on deposit in the banks, and earning half per cent., could be used to start the wheels of industry again.
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