BRITAIN’S DEBT.

Taranaki Daily News, 11 July 1921, Page 5

BRITAIN’S DEBT.

AN IMMENSE ACHIEVEMENT. During the two years following th armistice, Britain reduced her externi debt by £203 millions—“an immem achievement/’ said Mr. Austen Cham/ her lain, in his Budget speech—“not merely not achieved, but not attempt?d by any other belligerent country.” Of) that amount £117.1 >4,000 was repaid in 1920-21, leaving outstanding at March 31 a total of £1,1*01,000,000. “We have paid off over half or the AngloT/e.-ich loan in New York.” Mr. Chamberlain stated, “an operation which cost £51,370,000, and with, other repayTnents we have reduced the total debt in the United States, the course of the last 12 months, by nearly £75,000,000, and our debt in Canada by £2(1,000,000. We have paid off our debt in Japan. Spain, Argentina, Uruguay, and in Holland. The result is that except for comparatively small debts owing by us co the Allies, against which we can set tha far larger sums for which, they are indebted to us, and 'a generous loan of £8,000.000 made to us by the Straits Settlements and Mauritius, the only debt we now haw, outside lhe Uuited States and Canada, is in Sweden, £B2*3, 000. This will be paid off at its mature ity this summer.” In addition, the in-, ternal debt was reduced by £139 millions. The total national debt at March 31 was therefore £7.573 millions. This figure is exclusive of the interest accrued but not yet pay xble on Savings Certificates, amounting to £ll millions; of additional premiums due on the maturity of National War Bonds, which would amount to £44 millions, if all the 'bonds were held to mat urity; and alsot of interest on debt to the United States, Government, the payment of which, with some small exeeptions, is temporarily iq suspense. The amount so unpaid on March 31 last was approximately £&a millions, at par of exchange. The sum available for debt redemption In the current year is estimated at £103% millions. “This is an amount very substantially below the contribution ria de in the year just closed,” sa : 4 Mr. Chamberlain. “But circumstances, have changed. Depression has succeeded to booming trade; and the very fact* that wo did so much last year when things were going well may be reasoiu ably pleaded as a justification for mow ing more slowly in our present tenr orary .difficulty. Can we afford to use «u<y part of tliis surplus in relief of taxation? The first answer is supplied by the condition of the debt, which ia £7,573 millions. It is obviously desirable that we should redeem as much debt as we can while prices still remain above the level which we expect them to reach in a comparatively short time. But what we do is not entirely h question of free will. While 1 wan Chancellor of the Exchequer I had already undertaken to repay securities on December 1 falling due un ike New York market. These amounted on March 31, 1920, to 129 million dollars, but by March 31, 1921, they bad been reduced to 111 million dollars, and a further substantial amount has already been paid by us. 1 had aise agreed with the Canadian tankers to repay iq monthly instalments, ending April l t 1921, the remainder of our debt to them, which is now reduced to 125 millioq dollars. These and other foreign obli gations require us to provide £od millions this year, if we are not to reborrow abroad. If we have to re-borrow the last place I hope it will be is oute side the United Kingdom. In addition to the floating debt to tho of £275 millions, provision has been, made this year to meet domestic obligations amounting to £ll3 millions. If to this sum and foreign obligations I odd the amount of the Exchequer Bonds maturing this yeaer and » further amount in respect of which the holder o have an option of payment, which al! of them are not likely to exercise, yon arrive at a total of some £3OO millions. We have to deal with that in the current year, and in order to do so it will be necessary to borrow the diffr neo between 8300 millions and the sum appli< cable out of the receipts for debt reductions.”