§ 40. Colonel WEDGWOODasked the Chancellor of the Exchequer what was the total amount of Austrian bonds that His Majesty's Government received in 1923; were they taken in settlement of 2184 our cash advances at par value; at what average price were they disposed of; and to what account were the proceeds of the sales credited?
§ The CHANCELLOR of the EXCHEQUER (Mr. Churchill)His Majesty's Government received in 1923 £3,118,900 (nominal) guaranteed Austrian Bonds, being the equivalent at the then net issue price of certain cash advances to Austria plus accrued interest. The amounts received from the sale of these Bonds in 1923 and later have been paid into the Exchequer as Miscellaneous Revenue.
§ Colonel WEDGWOODWhy is this repayment of loans which is repayment of capital transferred to revenue account, and not to capital account?
§ Mr. CHURCHILLAll that would have to he considered in the light of the particular circumstances. It all comes to the same thing. We provide out of revenue a specific fund for the amortisation of the debt.
§ Colonel WEDGWOODIs it the practice of the Treasury, when loans are refunded, to treat that money as part of the revenue of the year instead of as cancellation of debt?
§ Mr. CHURCHILLIt depends. Our policy is to have the new sinking fund fixed by Parliament at a certain figure, and to utilise any accruing surplus at the end of any year for the redemption of debt.
§ Colonel WEDGWOODThe original loan of which this is a repayment was, I presume, a capital loan; it was not out of the revenue of the year. It was not in the ordinary Budget for the year, was it?
§ Mr. CHURCHILLIt was advanced from the Vote of Credit. It is difficult to lay down a general principle apart from the circumstances of each case. No question of principle is raised, because the repayment of debt is arranged either by the old or new sinking funds.