§ 40. Mr. WILMOTasked the Chancellor of the Exchequer why the total deadweight National Debt is £409,000,000 higher than in 1931?
§ Mr. COOPERThe increase is due mainly to the borrowing of £350,000,000 on Treasury Bills for the Exchange Equalisation Account. Against this the Exchequer, of course, holds corresponding assets. The minor causes of increase are borrowing for the expenses of converting the 5 per cent. War Loan; loss on the foreign credits raised in 1931; and an increase in the nominal total of the Debt due to the issue of loans at a discount in connection with conversions to a lower rate of interest; these items being partially offset by the application of Sinking Fund and other receipts to Debt redemption. The net increase not covered by assets is £59,000,000, and this addition to the nominal total is unimportant as compared with the savings in actual outgoings for interest charges which at the present time come to roughly the like sum in a single year.
§ Mr. KIRKWOODIs this not clear evidence of another method of evading the idea of an unbalanced Budget?
§ Mr. COCKSWere the credits lost in 1931 incurred as the result of the advice of the Bank of England and Mr. Montagu Norman?
§ Mr. COOPERNo, they were due to the fact that the country was compelled to go off the Gold Standard.
§ Mr. LOGANDo I understand the hon. Gentleman to say that the £350,000,000 to the debit of the Equalisation Account is included in this total?
§ Mr. COOPERYes.
§ Mr. THORNEIs this an asset against the money to which the hon. Gentleman has referred?
§ Mr. COOPERAs I said in my reply, we have assets in respect of the money borrowed for the Equalisation Account.