Sir Stafford Northeote's most important proposal was as soon as
might be,—he hoped it might be the year after next,—to set apart a fixed sum of £28,000,000 for the charges on the National Debt and the reduction of the principal, the whole balance, after payment of interest, being devoted to the cancelling of the stock itself. He wished to give .127,400,000 (X185,000 more than is necessary for the interest) this year for that purpose ; in 1876-7 he hopes to give £27,700,000 for the same purpose, and in 1877-8 to rise to £28,000,000, and there to keep it. By this means, within a generation,—i.e., thirty years,—he hopes to reduce the debt by more than £200,000,000,—an impression worth making. Sir Stafford also broached a scheme for consoli- dating and auditing the local debts of the country, which amount, he says, including the School Board-loans, to £84,000,000, and which are rapidly increasing. He wants to substitute for them registered debentures bearing a stamp which attest that the borrowing power under which the local debts are raised has not been exceeded, and that the other statutory provisions have been com- plied with,—a stamp which would, of course, increase the security and therefore greatly diminish the rate of interest on these debentures. The local rates in England and Wales will amount, he says, to nearly £19,000,000 for the current year, a sum which is diminished, however, by the additional subvention on grants in aid of nearly £1,000,000, which was agreed to last year. Sir Stafford hopes to have a local budget before the 25th March in every year and an Imperial audit. All these sugges- tions are excellent, but as yet they are of the nature of promises and hopes.
