§ I have a few observations to make about the National Debt. During the whole of the last year low interest rates continued to prevail, and the average of Treasury Bill borrowing was 11s. 6d. per 40 cent., which was actually one shilling per cent. below the extremely low average of the year before. As a result of the easy monetary conditions, I was able last December to effect an important consolidation of our short-term debt position by the issue of £200,000,000 of new long-term 2½ per cent. stock, and £100,000,000 of 1 per cent. Bonds both at a slight discount. I was able to raise sufficient cash to repay £150,000,000 of 2 per cent. Treasury Bonds on 2nd March, and £44,000,000, which was the total amount still outstanding, of the 3 per cent. Treasury Bonds on 15th April. I was also able to effect a substantial reduction in the volume of Treasury Bills which for some time past has been showing a tendency to increase. The issue of those two loans at a discount made an increase in the nominal amount of the debt of £6,500,000, and borrowing under the North Atlantic Shipping Act and the British Shipping Assistance Act, against both of which we have security, made a further increase of £2,000,000. But on balance, taking all the factors into account, the National Debt showed a reduction during the year of £4,500,000 and the Floating Debt was reduced by £51,250,000. I do not recollect to have heard recently any expressions of anxiety about the position of the Exchange Equalisation Account but all the same the Committee perhaps may be glad to know that that Account still continues to show a profit.