Commander BELLAI RSasked the Financial Secretary to the Treasury what is the nominal reduction of the National Debt since the peak of December, 1919; and what is the actual reduction, allowing for the conversion operations, which have been carried out since then?
Mr. GUINNESSThe total nominal amount of the dead weight Debt on 31st March, 1925, was £7,646,394,000,a net reduction of £351,606,000 'nominal since 31st December,1919. It must, however, be remembered that this net reduction in nominal Debt emerges after allowing for an increase by about £385,000,000 nominal owing to the issue of conversion loans within this period at a discount. The position may perhaps be illustrated best as follows. Between 31st December, 1919, and 31st March, 1925, the cash applied to the reduction of Debt was approximately £736,000,000. In return for this expenditure the State has secured:
(a) A reduction of £70,900,000 per annum in the annual interest