46. Mr. PENNEFATHERasked the Chancellor of the Exchequer how much, if any, of the £938,000,000 now owing to the United States is due to unpaid interest to date; and what sum will be required yearly in future to pay interest if the debt is not reduced?
§ Sir R. HORNEThe principal of the debt owing to the United States Government amounts to-day to ․4,135,818,358, having been reduced from ․4,166,318,358 since 31st March last. The amount of interest accrued unpaid to the 31st March, 1922, was ․598,373,000, as stated in my answer to the hon. Member for Moseley (Mr. Hannon) on the 9th May last. The figure of £938,000,000 quoted from my speech on Friday last represents the sterling equivalent, at an exchange of ․4.44 to the £, of the principal outstanding on 31st March last. The answer to the last part of the question depends on the arrangements made for funding.
§ Mr. W. THORNECan the right hon. Gentleman say why the Government are not paying their way, instead of running into debt?
§ Sir R. HORNEI am very glad to answer that question. The amount with which I have been dealing is an amount which we owe to the United States of America. It was borrowed in the course of the War in order to help our Allies. I think I am right in saying that not a single pound of it went in any way to British services. It was necessary, in 2272 order to aid our Allies, that we should provide them with the munitions necessary to fight their battles.
§ Mr. THORNEBut why has the interest not been paid from time to time, instead of its being allowed to run on?
§ Mr. SPEAKERThat question cannot be argued now.