§ 65. Mr. G. MACDONALDasked the Chancellor of the Exchequer if he will state the present position of the National Fund for the Redemption of the National Debt; and the amount of money contributed for this purpose during the year 1932?
Mr. CHAMBERLAINThe assets of the fund as shown in the last audited balance sheet amounted on the 31st March,. 1932, to £644,407 9s. l0d. The amount contributed to the fund in the calendar year 1932 was £304 12s. 7d.
§ 67. Captain WATERHOUSEasked the Chancellor of the Exchequer if he will state the aggregate value of net National Debt created by this country from 1915 to 1920, inclusive; and the value of the same debt to-day in terms of the wholesale price level of 1913 in each case?
Mr. CHAMBERLAINBetween 31st March, 1915, and 1st April, 1921, the nominal amount of the National Debt was increased by £6,723,812,000. So many changes, by way of conversion and repayment, have taken place since that date that a calculation of the nature suggested in the last part of the question would have no value. The real burden of the debt is the interest charge and not the nominal capital figure.
§ Captain WATERHOUSEDoes the right hon. Gentleman think we are today able to bear the charge on a Debt of double the real value of that of the boom year 1920 and, if not, what steps is he taking to meet the situation?
Mr. CHAMBERLAINI have pointed out that the burden of the Debt does not lie in the capital but in the interest 1175 charges. As for the second part of the Supplementary Question, I could not answer that by way of question and answer.
§ Captain WATERHOUSEIs it not a fact that, if the capital has gone up in real value, the interest charges have also gone up in the same proportion?
§ Mr. MAXTONDo I understand that that is the financial policy of the Government, that the Debt may be of any amount as long as the rate of interest is low?
§ Mr. HOROBINIf that is carried to its logical conclusion, what is the point of a sinking fund? What is the point of trying to reduce the capital value of the Debt?