HC Deb 19 April 1920 vol 128 c73

The dead weight debt on the 31st March last was estimated to amount to £7,835,000,000, but without some explanation that figure would be misleading. In the first place, a part which I estimated at from £130,000,000 to £140,000,000 of the increased nominal total is due to the conversion of various 5 per cent. issues into 4 per cent. Victory Loan issued at 80 and 4 per cent. Victory Bonds, issued at 85. The effect of these conversions is to increase the face value of the debt while leaving the interest charge practically unaffected. In the next place, owing to the uncertainty of the date at which War Savings Certificates would be tendered for repayment, those certificates have hitherto always appeared in our accounts at their purchase price, 15s. 6d. The figure which I have just given for the first time includes them at their estimated value, allowing for accumulations of interest for the respective periods up to date. This gives a much truer picture of our actual position at the moment, but the addition involved by these changes amounts to £24,000,000, and a comparison of the increased total debt which I have given the Committee now with the figures in any previous years is vitiated to that extent. On the other hand, now, as previously, the debt figures represent with that exception the nominal value, and, therefore, do not include additional premiums due on the maturity of National War Bonds. If all these Bonds were held until they matured the premium would represent eventually a further obligation of £46,000,000. That figure will, in fact, be reduced in future by tender of these bonds before maturity in payment of duties and taxation.