§ 33. Mr. STOURTONasked the Chancellor of the Exchequer if, in view of the increased burden of the service of the 1315 National Debt upon industry and the increased purchasing power of the pound sterling, he will consider taking immediate steps to place the whole internal Debt interest on a 3 per cent. basis and devote the saving made thereby to the relief of the direct and indirect taxpayer?
§ The FINANCIAL SECRETARY to the TREASURY (Major Elliot)No, Sir. This step is not in contemplation. I would point out that in the case of Treasury Bills for instance we are at present borrowing at a very much cheaper rate.
§ Mr. STOURTONIs the right hon. and gallant Gentleman prepared to assure the House that an early opportunity will be taken to bring about a comprehensive conversion of the internal debt without further procrastination?
§ Major ELLIOTI am afraid I cannot add anything to the statements which have been made on the subject from time to time in the House.
§ Sir A. M. SAMUELMay I ask whether a question of this kind, even if put with the best will in the world, does not do a great deal of injury by implying repudiation and thus hurting the national credit?
§ Mr. BOOTHBYIs it not a fact that we have lost in the past two years more than one chance of carrying through a conversion; and need we take it from my right hon. and gallant Friend's answer that the Government have abandoned all hope of carrying through a conversion scheme fairly soon?
§ Major ELLIOTNot at all, Sir. If my hon. Friend will look at the question, he will see that it does not refer to conversion operations.
§ Mr. STOURTONDoes not the right hon. and gallant Gentleman consider that this Debt is a millstone round the neck of industry?
§ Mr. MACQUISTENAll debts are.
§ 43. Mr. STOURTONasked the Financial Secretary to the Treasury if he can give figures demonstrating in terms of pre-War prices the relative increase of the burden of the National Debt interest in the year 1920–21 and at the latest convenient date?
§ Major ELLIOTI should hesitate to attempt to demonstrate any conclusion of this nature in terms of the price level, particularly at a time like the present when different index numbers of prices give widely divergent results. It must also be borne in mind that prices were at their peak in 1920–21 and that the Debt was raised considerably earlier.
§ Sir A. M. SAMUELWhy does the right hon. Gentleman accept the 1920 date in view of the fact that very little of the National Debt was incurred after 1918, and that the purchasing value of the pound to-day is not very much more than the average value of the pound over the whole period during which the National Debt was borrowed prior to 1918?
§ Major ELLIOTI have answered the question as it is on the Order Paper.