He proposed, therefore, to return to Sir Stafford Northcote's plan
of 1875, and establish a fixed Debt charge of £355,000,000 a year. This would extinguish the . whole Debt, internal and external, in fifty:years. Savings in interest would be available for. Income Tax remissions, but otherwise would be added to the Sinking Fund. The amount available for this year for the Sinking Fund and _for the liabilities on Savings Certificates would be £65,000,000, composed of £51,000,000 out of the fixed Debt charge, £800,000 from the Exchequer, and £13,200,000 released by the fusion of the Treasury Note issues with those of the Bank of England. It will be said, no doubt, that though this seems very attractive it really means that Mr. Churchill intends to reduce the Sinking Fund now merely to increase it later by means of the interest saved. There will be much discussion of this subject and we will only say now that Mr:Churchill exaggerates his contribution to Debt redemption.
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