The New York herald., 1922-05-02

merely the use OFT property.
deadweght national debt of the coun-
try continued Sir Robert. was in
December 1919, when It. amounted to
the huge total of f7.a 100000 BY the
end of March. 1921. the figure had been
reduced to f7,574 10000. The correspond
ing figure at the end O. March. 1922,
was c7654 800. 600. which is an increase
In the nominal total Of over eighty
millions The explanation is. of course.
that the issue of the 3ts per cent. con-
version loan brought UP the nominal
total debt. while II did not increase
the real burden Indeed. The real bur
den has decreased considerably for this
year. not only in payments of cash,
but because OF change in its char
acter.
1T has been found possible to reduce
the estimate for interest management Of
the debt this year by seventeen millions.
and in this we have considerable reason
for satisfaction as regards the external
and internal debts.
''Transference OF the external debt to
the internal is a definite gain to ma
tional welfare, for we are paying in
tcrest TO ourselves instead of to other
people. We have reduced the exterua;
debt by no less than f274,666,000 These
figures do not include the interestr+em-
porarily in suspension on the debt due
the United States.
''The total debt due the United States
is $4,f66. 900, ,000,t and taking $320 to
the pound. as it stood to last year. the
debt works out f1.301. $3.50 With
exchange at $4.20. the sterling equiv
alent is now f946.S2Q,o This repre-
sents 2. reduction Of f355,o00,000 and
when exchange is restored TO par the
sterling equivalent will be fs56. $50. 900.
'"rhe question Of exchanges effect
upon the fortunes of the country is a
very interesting one, but | think the
figures relating to our exports TO the
United States of raw material and the
dollar value of our purchases are suf-
ficientIy striking. / hope there will be
still further grounds for satisfaction as
regards the floating maturing debt due
to the Improvement i'm British securi-
ties Taxpayers would secure sub
stantial alleviation in the burden of in
terest on the debt. In any case the
position has been vastly improved.
Reduction of Debt.
Instead Of f2S2,O00. 900 maturing in
the debt maturities this year viii DE
reduced to E155.0O0, 900. The record last
year regarding the debt is that we have
greatly eascd our position by reducing
the internal debt by 10000, 900 and the
floating debt byE246, 100000 by reducing
the maturing debt in four years to
1850 ,00O, 900. And IN addition TO these
desirable changes in the character of
our debt we have devoted over fSS,0OO,-
600 % reduction in the deadwcight bur
den Of our debt"
Speaking of the coming year, Sir
~ a Il. tod ttaa ayfn
of a supplementary estimate, AS he felt
confident that the course of the present
year, like last, would succeed In making
appreciable reductions. with still more
the following year. He said the csti-
mates for expenditure included f25,00O,-
900 for interest on the deDt to the United
States from October next. but included
no provision for repayment of the debt
apart from certain terminable annuities.
Speaking of the proposal for the re-
duction In taxes tlft Chancellor said:
acknowledgement is widespread, break
| ing the hearts and cmbittenin Gthe lives
of hundreds of thousands of our working
people. The professional middle classes
are enduring privation to-day such as
they never berorc had to face. The un-
paralleiled depression which existed
throughout the whole of last year is still
with us.
Happily, there are signs of revival.
which with little encouragement may
develop into solid progress. The burdeA
of taxation which has been borne by
the British people. both during and since
the war. in a degree which excited the
admiration OF the whole world. is now
felt to be so oppressive as 10 check en-
terprise and deepen dependency. Is not
it possible by slackening to give some
much needed stimulus to trade?
II have no doubt as to the course we
should pursue. We are saddled this
present year. with new burden in the
shape Of the interest we have to pay on
our debt to the United States. That we
shall meet without question. (Cheers.)
But 1t Is possible. by too great pressure
upon the taxpayer to defeat the very
object at which we aim.
II think the turning point has come.
| am OF the opinion that we should not
ask the taxpayer this year to redeem
any of our debt. At the end OF the year
our debt will not he decreased. but
Will not be any greater. The need for
reduction in taxation is great. II industry
is to have fair prospect of success"