§ 42. Mr. PETHICK-LAWRENCEasked the Chancellor of the Exchequer what is the total amount of money which he anticipates will be raised in the two new issues announced on Tuesday last; to what purpose it is proposed to devote it; and what will be the immediate effect on the interest payable on the debt?
Mr. MORRISONI am glad to be able to inform the House that both the recent issues were successful, the subscription lists for the 1 per cent. bonds having been closed an hour after being opened and the lists for the 2½ per cent. loan about two hours later. The total amount of cash raised when the loans are fully paid will be £291,000,000. Out of this sum £238,000,000 will be applied in providing for the redemption of £150,000,000 2 per cent. bonds, redeemable on 2nd March next, and £88,000,000 3 per cent. bonds, of which one half was redeemed in April last and has since been represented by a temporary increase in floating debt, and the other half will be redeemed on 15th April next. The remaining £53,000,000 will be available for reducing ordinary floating debt. The immediate cost of interest on the National Debt will not be substantially changed. The value of the operation lies in funding for a considerable period a large body of short indebtedness at an exceedingly favourable rate.
Lieut.-Colonel SANDEMAN ALLENMight I ask whether this would have been possible under a Socialist Government?