§ This brings me to the position of the Debt. The Dead-Weight Debt on the 31st March, 1922, was £7,676,000,000. The corresponding figure on the 31st of last month, as nearly as I can estimate it, was £7,773,000,000. The figures, as is customary, value External Debt at par, and do not include premiums due on repayment of War Bonds or interest accrued on Savings Certificates. Both the figures are, of course, face value, and it must not be inferred that there has, in fact, been an 1727 increase in the burden of our Debt. The face value increase is due, in the first place, to the conversion of 5 Per Cent. War Bonds and Exchequer Bonds, and 5½ Per Cent. Treasury Bonds, into 3½ Per Cent. Conversion Loan, which resulted in a nominal increase of about £135,500,000; and, in the second place, to the inclusion in the capital of our debt of the arrears of interest due on our debt to the United States of America. If these disturbing factors are eliminated, the effective reduction has amounted to over £149,000,000 (face value). Quite apart from savings due to actual repayment, the taxpayer will have saved, by conversions of Bond Debt during the year, rather over £750,000 a year in interest, and £4,500,000 in premiums which would have been payable on the Bonds had they matured instead of being converted.
§ I will take External and Internal Debt separately, and would again remind hon. Members that I have had the details printed in Table IV. of the Blue Paper. A year ago, External Debt stood at £1,090,184,000 at par of exchange. On 31st March last it stood at £1,155,652,000, the apparent increase being more than accounted for by the addition to the debt of the three years' interest in arrear on the American Debt. In the four years from the 31st March, 1919, we have reduced our External Debt by no less than £209,198,000. As the Committee knows, the only important external debts now remaining arc our debt to Canada and our debt to the United States of America. The precise amount of our dollar debt to Canada has recently been determined, and I should like here to thank most warmly and sincerely the right hon. Gentleman the Member for Paisley (Mr. Asquith) for the great service he rendered in arbitrating on a very difficult and technical point. We have repaid to Canada in the year 62,000,000 dollars, and the amount of dollar debt outstanding is practically equivalent to the Canadian Sterling Bonds which we ourselves hold. I anticipate that these debts will be set off one against the other, and that, for all practical purposes, we may regard our Canadian debt as settled.
§ Apart from 61,000,000 dollars in respect of Pittman silver, our debt to the United States Government stands at a total of 4,600,000,000 dollars. The Committee are aware of the terms on which this debt 1728 has been funded over a period of 62 years, and I hope shortly to settle the final details of the Bonds to be given in replacement of our demand obligations. I will not stop to comment on the settlement, except to express once again my satisfaction at a step which I feel certain will be in the interests of the peoples of both countries.
§ As regards Internal Debt there has been a very satisfactory improvement. A year ago the floating debt was £1,029,500,000. On 31st March last it was just under £810,000,000—a reduction of £219,573,000. Other internal debt maturing in the year amounted to about £169,000,000, of which £64,500,000 was paid off and £104,500,000 converted. mostly into 3½ per cent. Conversion Loan We have also succeeded in lightening our future by converting into long term debt £132,750,000 of debt maturing during the current year and £216,250,000 of debt maturing at later dates. As a consequence of these operations and of the issues of 10 year 4½ per cent. Treasury Bonds, recently I am glad to say reduced to 4 per cent. Treasury Bonds, we have now only to face this year about £84,500,000 of 5 per cent. National War Bonds maturing in September and February next. Savings Certificates, thanks to the untiring efforts of the National Savings Committee and their Chairman. Lord Islington, produced, net. i.e., after allowing for withdrawals, 233,500,000, as compared with 236,250.000, net in 1921–22.