The expenditure was fortunately below the estimate. By placing Treasury
Bills at lower rates the Government saved £11,000,000. The Supply Services cost £69,000,000 less than was expected, but there was unforeseen expenditure on unem- ployment relief. With the surplus of £45,693,000, the sum of £25,000,000 assigned for the reduction of debt and other repay- ments, a total sum of £88,466,000 was applied to redeem the Debt. The National Debt had increased during the year from £7,574,000,000 to £7,654,000,000 because of the success of the Conversion Loan at 31 per cent., but the real burden had diminished. The cost of the Debt for interest and management for this year would be £17,000,000 less than for last year. Our external debt was reduced during the year by £71,379,000 to £1,090,184,000, owing to America and Canada and to Allies who owed us more than we owed them. Our total debt to America amounted to 4,166,000,000 dollars ; the sterling equivalent, owing to the improvement of the American exchange, wag £946,820,000, or a third less than it was two years ago. The floating debt had been reduced by £246,000,000 to £1,029,515,000.
