Internal Debt (Interest).

Oral Answers to Questions — Kenya Colony. – in the House of Commons on 23rd March 1922.

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Mr. L. MALONE:

40.

asked the Chancellor of the Exchequer whether, having regard to the extraordinary burden of national expenditure, and to the fact that over one-third of this expenditure consists of interest and other charges on the National Debt, of which six-sevenths is internal debt, he will consider the possibility of easing the national burden by reducing the interest on internal debt pari passu with the fall in the cost of living, thus regulating payments to War bondholders on the same principle on which payments to salary and wage-earners and to Civil Service pensioners are now being reduced, and War pensions under the Royal Warrants are to be reduced in April, 1923, in proportion to the fall in the cost of living between 1919 and 1922?

Photo of Sir Robert Horne Sir Robert Horne , Glasgow Hillhead

The answer is in the negative. The analogy which the hon. Member seeks to establish is, I think, entirely unsound.