HC Deb 09 February 1922 vol 150 cc329-30W

asked the Prime Minister whether he is aware that the reduction of interest on the War Loan by 2 per cent. would effect a national saving of over £100,000,000 per year; whether this has been recommended by the Economy Committee; and, if not, whether he is prepared to recommend this to the country?


The debt incurred during the War is some £7,000,000,000, of which over £1,000,000,000 is external debt. The amount which is represented by 2 per cent. on this sum is a mere matter of arithmetical calculation; but I do not agree with the suggestion that to confiscate 2 per cent. of the stipulated interest on War stocks would result in a real national saving. The answer to each of the remaining parts of the question is in the negative.