PUBLIC DEBT

Evening Post, Volume CXIX, Issue 152, 29 June 1935, Page 8

PUBLIC DEBT

MINISTER'S EXPLANATION

"Various statements -have appeared in the Press," said the Acting Minister of Finance (the Hon. A. Hamilton) yesterday, "reviewing the increases in the Public Debt in recent years, and particularly an increase of over £20,000,000 for the financial year 1933----34. I would like to point out, however, that this large increase was mostly of a. temporary nature and consisted of Treasury bills issued to finance operations under (the Banks Indemnity (Exchange) A?t. All .these bills have since been paid off and the large increase in the debt for the financial year 1933-34 is balanced by a correspondingly large decrease in the total debt figures for the financial year 1934----35. In fact, since the/relative burden of debt charges was increased through the fall in prices and the contraction in national income, the Government has been particularly careful to^keep fresh borrowing down to a minimum, and confine it to essential requirements or productive works so as not to add to the burden of debt charges. "As proof of ,the success of the Government's efforts in this direction I would draw attention to the following figures of the debt as at March 31: 1932 £281,942.800; 1,933, £282,622.958; 1934, £302,791,996; 1935. £280,580,000 (approximate). It will be observed that the total debt as at March 31, 1935, is actually less than it was at March 31, 1932. . >