§ 50. Mr. PETHICK-LAWRENCEasked the Chancellor of the Exchequer what will be the estimated increase in the face value of the National Debt on the assumption that all the present holders of Five per cent. and Four per cent. National War Bonds and Four-and-a-half per cent. Treasury Bonds which fall due for repayment on 1st February next ac- 1394 cept the invitation to convert into the new Four-and-a-half per cent. Government Loan, and avail themselves in July next of the option to convert into stock of the Four per cent. Consolidated Loan?
§ Mr. CHURCHILLOn the assumption stated in the question, the increase in the nominal capital of the debt, after providing or the premiums on the Five per cent. National War Bonds, would be £23,750,000. On the other hand, there would on the same assumption be an effective saving of interest amounting to £440,000 a year. Out of this interest saving of £440,000 per annum about £150,000 per annum would be adequate to redeem the increase in the nominal debt in a period of 50 years.
§ Mr. PETHICK-LAWRENCEIn view of the likelihood of having to issue further stock for conversion purposes, and in view of the large financial opinion against these issues involving a considerable increase in the face value of the Debt, will the right hon. Gentleman consider, in future issues, a longer term security on a 4½ per cent, basis?
§ Mr. CHURCHILLI shall be glad if the hon. Gentleman will put that question on paper, in order that I may keep all the different points in view at the same time.