The Prime Minister addressed a very interesting speech on Tuesday
to the bankers and merchants of the City of London at a dinner given at the Mansion House. Those in charge of the public purse since the first year of peace had reduced the expenditure of the country from over £2,000,000,000 a year to but little over £800,000,000. The staff in the Government offices had been so greatly reduced that there are now only 10 per cent. more officials at work than before the War. And here it must be remembered that the work of the public administration has been enormously increased owing to the Pensions and other services introduced during and caused by the War. Though nearly half our income goes to the pay- ment of interest on debt, we have in three years out of income reduced our debt by £450,000,000. Since the Armistice we have nearly halved the floating debt. It was £1,500,000,000. It is now only £800,000,000. We have paid off in addition all our foreign debt, except to America. That is, we have paid back £20,000,000 to the Japanese, £25,000,000 to South America, and another £25,000,000 to Canada. We have balanced our Budget and we have established a sinking fund. These things have been hard to do; but we have maintained the credit of the country—a credit that is the life-blood of commerce, and upon which the food of our people depends.
