Sir Robert Home went on to say that the revenue
would fail to provide the £80,000,000 required for sinking fund. Allowing for the bonds surrendered in payment of excess profits duty, he would have to borrow about £60,000,000 to meet the obliga- tion. He had raised fresh loans to pay off bonds falling due to the amount of £103,000,000 and external debts of £80,000,000 due in the United States and Canada, thus strengthening our position in regard to the foreign exchanges. He had, he said, found it easier of late to secure loans from the City, as the Government were thought to be more anxious to save than to spend. The revenue for next year would be much reduced. The income-tax, based on the three years' average, would yield less, the excess profits duty would produce less and the receipts from sales of war stores would be disappearing. On the other hand, interest of £50,000,000 a year would begin to be paid on the American loan, including arrears of interest. Yet, the Chancellor added, Great Britain " had a wonderful resilience," and trade showed signs of revival.
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