HC Deb 17 April 1934 vol 288 cc910-1

Before I pass to other matters the Committee may like to have a brief statement from me on the subject of the National Debt. I ought to draw particular attention again to the extraordinary cheapness of the rate of interest on Treasury Bills. The average over the whole year was only 12s. 6d. per cent., which was even lower than the exceptionally low level which we reached a year before and compares with an average over the whole pos-War period of £3 6s. 10d. per cent. The whole amount of Treasury Bills and Savings Certificates together at their lowest point in the year was over £1,200,000,000, but interest amounted to a little more than £15,000,000, only one and a quarter per cent. on that whole vast total.

During the year £40,000,000 of 4½per cent. Treasury Bonds and £24,000,000 of 5½per cent. United Kingdom Dollar Bonds were converted into 2½per cent. Conversion Loan or Conversion Bonds. By that operation we saved £615,000 in interest last year, and in a full year that saving will amount to £1,300,000. The net reduction in the nominal total of the dead weight debt was £21,600,000. Hon. Members will see in the White Paper that there is an apparent increase in the debt of £178,500,000, but if they add those two figures together they will see that the difference is accounted for by the issue from the Exchequer to the Exchange Equalisation Account of £200,000,000. This sum is of course covered by assets, and I may say that the 'account continues to show a profit.