§ 77. Major ENTWISTLEasked the Chancellor of the Exchequer whether the Government intends to take any action for checking the decline of the national credit as indicated by the difference of £340,000,000 between the value of the longer-dated Government securities at the price of issue and their present value 642 and by the failure of the Treasury Bonds issue?
Mr. CHAMBERLAINI do not think the hon. and gallant Member is justified in regarding the phenomenon to which he refers as an indication of a decline of the national credit. The present depreciation in the market value of British Government War issues is paralleled by an exactly similar depreciation in the Liberty Loan issues of the United States Government, and is a world-wide phenomenon due to temporary causes arising out of the destruction of capital during the War. I have done my best to meet the necessities of the situation by presenting a Budget which provides for a reduction of debt out of surplus revenue in the current financial year to a total of £234,000,000, and in 1921–2 to a total of some £300,000,000. As I have more than once stated, I do not think that there is any short cut to recovery, which must depend on patient and long-continued effort. As regards the Treasury Bond issue, though the total subscribed is disappointing, the number of small applications is satisfactory, and, I think, may be taken to indicate that this further opportunity of investing in a high-class Government security is welcome to a considerable section of the growing class of small investors.
§ Lieut. - Commander KENWORTHYDoes not that answer show the necessity of preventing any more destruction of capital by further warfare?