§ As regards the internal debt there has been a very satisfactory reduction both in the floating debt and in the amount of early maturing debt. As everyone can understand, these two forms of debt are the chief anxieties of a Chancellor of the Exchequer. A year ago the floating debt was£1,275,000,000. At 31st March, 1922, this figure had been reduced to£1,029,515,000, or a reduction of about£246,000,000, in the course of the year.
§ Mr. ASQUITHIt has been reduced further since?
§ Sir R. HORNEYes, it has been reduced further since. I take now the question of maturing debt, which is one of almost equal anxiety. A year ago the amount of internal debt other than floating debt maturing in the four years 1921–22 to 1924–25 was£886,957,000. I leave out of account National Saving Certificates, which are in a special category. Included in this figure is a sum of£12,257,000, representing premiums due on the redemption of National War Bonds. The amount of internal debt maturing in the four years 1922–23 to 1925–26, again including premiums on National War Bonds and excluding Savings Certificates, is 1027 £626,830,000. Formidable as this sum is, the reduction of£260,127,000 as compared with a year ago, is eminently satisfactory. I have every hope that the year 1922–23 will bring a still further improvement, both as regards floating debt and other maturing debt. Thanks to the improvement in the market price of British securities—although this is, in part, unfortunately due to trade depression—the taxpayer is securing a substantial alleviation of the burden of interest on floating debt, and there is reason to hope that before very long it may be possible to effect the conversion of early maturing debt into funded debt on terms which will further reduce the annual liability for interest.
In any case the position in 1922–23 has been vastly improved. Instead of£232,000,000 bonds maturing in 1922–23— the figure given in the Budget of a year ago—the figure has been reduced on the 1st April, 1922, to£155,000,000. Since that date, and perhaps this will interest the Committee, though it does not apply to the last year, not only have we more than covered by new five year bonds, issued by tender, the£21,000,000 of 5 per cent. Exchequer Bonds, falling due on the 1st April, 1922, but£26,339,000 of National War Bonds falling due on 1st October, 1922, have been exchanged by their holders under the option attaching to those bonds into 5 per cent. War Loan 1929–47. The conversion now being offered to holders of National War Bonds due in October, 1922, and April, 1923, is a further step in the same direction. Accordingly the record of 1921–22 in regard to debt is this, that we have greatly eased our position by reducing our external debt by£71,000,000, by reducing our floating debt by£246,000,000, by reducing the maturing obligations which confront us in the next four years by£260,000,000. In addition to these desirable changes in the character of our debt we have devoted£88,000,000 to reduction of its dead weight burden, and that is a record on which we may congratulate ourselves.