Mr. Churchill admitted that t he had had some luck
in last year's finances, but, although under-estimates of expenditure had been saved by windfalls, he must also claim credit for £10,500,000 " clawed_ back" from the Departments. The process of cutting down the personnel would be continued. The present Government had eliminated .7,000 officials _and. 11,000 more were. doomed in the Civil Departments alone. Turning to the Debt problem, Mr. Churchill pointed out that there had never seemed to be a full reward for the amount of the repay- ments, because of the forced .conversions of the cheaper War Loans. Nevertheless more than three-quarters of the liability for the 8i per cent. National War Bonds had been disposed of. The listing of theFunding Loan in New York at the request of the Americans themselves proved the confidence of America in British credit. Con- version prospects were better than ever, but he must meet .the disadvantage of the otherwise admirable National Savings Certificates which piled up debt, without providing A Sinking Fund. * 5
