Turning to the Floating Debt the Majority recommend that - it should
be steadily reduced. As for the conversion of Debt, they think that all future loans ought to be issued at a figure not 'appreciably below par, and they condemn the practice of earmarking the-Sinking Fund to particular securities. . It may be noted that the Government Loan Which was floatediast-month conflicted with both these principles. Perhaps the fairest comment to make is that the advice of the Majority is ideally orthodox. In practice the Government when issuing a loan have to examine the financial feeling of the moment and to make sure that their offer will be sufficiently popular. The Majority take a strong, but not unduly strong, line about the importance of increasing the Sinking Fund. They think that the present average fund of £50,000,000 a year is not large enough, and they suggest that within five years it should be raised to £75,000,000 and within the following ten years to £100,000,000. * * *
