§ Now I must add, both because it is the tradition so to do and because it is very necessary, a few sentences on the subject of the National Debt. The low rate of interest on Treasury Bills continued throughout the year. The average rate indeed was only 11s. 2d. per cent. That constitutes a new low record. It is 6d. below the year before, and 4d. below the previous low record of 1935–36. In April of last year there was an issue of f100,000,000 of 2½ per cent. National Defence Bonds at 99½ 65,000,000 has been used for issues under the Defence Loans Act, and the balance for the time being is utilised for the reduction of the Floating Debt. Last July, the Committee will remember, Parliament authorised an addition to the debt of £200,000,000 for the purpose of increasing the resources of the Exchange Equalisation Account. But this increase in the nominal total of the debt is, of course, covered by assets. In addition some £3,000,000, for which we also hold security, has been issued out of borrowed moneys under the Tithe and Shipping Acts.
§ How do we stand now as regards the National Debt as a whole? Allowing for the application of about £10,500,000 to the contractual Sinking Funds, the net increase in the Debt is £257,750,000 nominal, of which £203,000,000 is covered by assets. I had better add this. in the published accounts the increase at present is shown as £229,000,000, and the explanation lies in this: last year's surplus, though intended shortly to be used for Defence expenditure, appears for the time being in our books, on 31st March, as reducing the Floating Debt. Another observation I must make under this head. Last summer, in the course of the Debate on the Bill for increasing the assets of the Exchange Equalisation Account, I announced that as an experimental measure a public statement would be made every six months as to our gold holding, and that arrangements would be made with a view to a confidential examination of the state of the Account by the Public Accounts Committee. Steps to this end have been taken. The Account continues to show a profit. That concludes what it is my duty to say about last year.