BRITISH NATIONAL DEBT

Nelson Evening Mail, Volume LXIII, 13 July 1929, Page 12

BRITISH NATIONAL DEBT

Lust year Mr Winston Churchill introduced the system of a fixed annual provision for the national debt,, the amount reserved being £355,000,000, the balance after payment of interest to be appropriated to repayment of debt. A writer in the “Review of Reviews’ states that, in addition to interest on the national debt. thi s amount lias to cover interest on savings certificates (which accumulates during their currency and becomes payable on their maturity) and the compulsory or obligatory sinking funds attached to specific loans, amounting to about £50,000,000 a year. Last rear ordinary interest absorbed £293,491.000, and interest on savin"s certificates £10,000,000, leaving onlv <045.500,000 available for redemption of debt. Fortunately £13,200.000 of profits made in the currency ecte issue became available and this was applied to paying off debt. Actually the sinking fund appropriations out of revenue were £57,909,000, or £13,091,000 less than the obligatory, sinking funds, for the chancellor included £6,400,000 received in. repayment of Dominion war 'debts in his Revenue. The writer states that the interest charge for this year has been underestimated, and instead of £51.000.000, lie estimates that less than £44,000,000. or over £60,000,COO short of statutory requirements, xvdl be available for debt redemption. ‘ln other words,” lie concludes, “the country will be borrowing to repay debt.