§ SIR WILLIAM HARCOURT (Derby)I beg to ask the Chancellor of the Exchequer what is the present amount of the Floating Debt; what is the rate of interest at which the last issue of Treasury Bills was made; and whether he proposes to take any measures to reduce the amount of the Floating Debt, which is now considerably in excess of that at which it has generally stood in recent years?
§ MR. GOSCHENThe present amount of the Floating Debt in the hands of the public is about £23,000,000, as against an amount of a little under £14,000,000 in 1885–6. The present amount of Unfunded Debt held by the National Debt Commissioners is about £11,400,000, as against an amount of about £3,750,000 in 1885–6. The large 1356 increase under both heads is almost wholly due to conversion and redemption operations, and it must be remembered that the amount held by the National Debt Commissioners can be funded at any time. The last issue of Treasury Bills was made at about 3¾ per cent., but it would not be fair to let the rate of interest at any particular moment influence the judgment much. The average rate over a series of years for three months' Treasury Bills has been £2 6s. 8d., and for six months' Bills £2 12s. 2d., clearly a very remunerative rate for the Exchequer. The rate of interest during the current financial year up to date, taking three and six months' Bills together, works out at £2 11s. 5d., still a satisfactory result, but it is probable that the average will be higher during the remainder of the financial year. On the whole, the interest of the Floating Debt over a series of years has been materially in favour of the State as compared with the rate of Consols. Still, I am anxious gradually to reduce the amount of Unfunded Debt in the hands of the public, and I have that object constantly in view. The resources of the National Debt Commissioners afford me the means of doing so, and they would gradually absorb the excess. Another possible means of reducing the amount in the hands of the public would be the issue of Consols on a large scale, the proceeds of which would be applied to paying off Bills, but I do not contemplate such a course. It would disturb the money market and the Consol market, and would, under present circumstances, certainly not be profitable to the State. I look on a gradual reduction as a preferable policy. I hope that, if the right hon. Member will only give me time enough, I may leave a reduced amount of Unfunded Debt to whoever may be my successor.