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RETURN showing (1) the Aggregate Gross LIABILITIES of the STATE

as represented by the NOMINAL FUNDED DEBT, ESTIMATED CAPITAL LIABILITY in respect of TERMINABLE ANNUITIES, UNFUNDED DEBT and other LIABILITIES in respect of DEBT, the Estimated Assets, and the EXCHEQUER BALANCES at the close of each Financial Year, from 1913–14 to 1922–23, both inclusive, and (2) the Gross and Net EXPENDITURE charged annually during that period against the PUBLIC REVENUE on Account of the NATIONAL DEBT, and other PAYMENTS connected with CAPITAL LIABILITIES (in continuation of Parliamentary Paper (Cmd. 1781], of Session 1923).

Presented to the house of Commons by Command

of His Majesty.

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To be purchased through any Bookseller or directly from H.M. STATIONERY OFFICE
at the following addresses: Imperial House, Kingsway, London, W.C.2, and

28, Abingdon Street, London, S.W.1; York Street, Manchester ;
1, St. Andrew's Crescent, Cardiff ; or 120, George Street,


1923 Price 6d. net.

Cmd. 1924.

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Part I. of this Return is an Account of the direct liabilities of the State outstanding at the close of each financial year from 1913–14.

It shows not only the amount of Funded Debt, the estimated liability in respect of Terminable Annuities, and the amount of the unfunded Debt, but likewise any other liabilities which may be regarded as proper additions to be made in a statement of the total indebtedness of the nation.

The Account also gives those Assets of the State which admit of being calculated, such as sums advanced out of the Exchequer and repayable, the estimated capital value of the Suez Canal Shares, and the Balance in the Exchequer. Assets arising out of the European War (such as loans to Allies and Dominions, stocks of commodities, &c.), are, however, not included in the account.


Part II. of this Return is an Account of the total issues made in connection with capital liabilities in each year from 1913–14, which have been charged against the Revenue. The account, moreover, gives any receipts which are cognate to Debt Services, and thus it shows the true charge in each year on the taxpayer in respect of the interest of the Debt and of repayments of capital. The details of these issues and receipts in 1922–23 will be found in Appendix III.

The issues charged against the Revenue of the year do not, however, comprise all the Cash transactions affecting capital liabilities. Accordingly a further account is given in Appendix II., which adds to those issues, (1) the amount of the Old Sinking Fund (if any) representing the surplus of the preceding year, (2) all sums taken out of the Exchequer balance (including for ihe years 1918–19 to 1921-22 the Depreciation Fund under the Finance Act, 1917) which have been issued for Debt purposes, and (3) any other sums which, though not forming part of the Revenue, have gone to the discharge of Debt (like Composition in respect of Stamp Duty and Land Tax Redemption). The same Appendix also shows the amount raised by creation of Debt, in order that the net result of the Debt transactions in Cash may be ascertained. In correspondence with the account of the capital liabilities (Part I.), which states the amount of the Exchequer balance at the end of the year, supplementary columns are added to Appendix II. to show by how much the balance and other assets have been increased or decreased in the year.

Notwithstanding that all such transactions are included in Appendix II., it will be found that the amount by which the net liabilities varied does not correspond with the difference between the amount of money applied in redemption of Debt, and the amount raised by creation of Debt. In the first place, a given amount of Cash will cancel either a larger or smaller amount of Stock, according as the Stock stands below or above par. In the second place, the full amount issued to the National Debt Commissioners in one year for redemption of Debt may not be actually so applied until the next year, as they do not always effect their purchases of Stock immediately on the receipt of the money. Moreover, in the case of issues to the National Debt Commissioners for the purchase from the Inland Revenue Commissioners of Funding Loan and Victory Bonds tendered for Death Duties, the Stock and Bonds so purchased cannot, in consequence of the conditions of the loans, be immediately cancelled, but must be held by the National Debt Commissioners until cancelled by the operation of the Special Sinking Funds of the loans. In the third place, Stock may be issued at a discount or the full consideration money for the Debt created in

year may not be received till after the close of that year. Finally, conversions occasion an increase or decrease in the Debt according as the value of the converted security is above or below that of the security created in its place.

(11309) Wt.10511/562 1,125 1/24 Harrow G.62/46


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III. The other Appendices to the Return are as follows : Appendix I. which shows in detail the gross capital liabilities, and estimated

assets of the State for the latest year. Appendix IV. contains brief notes on the principal operations of the Debt

from the year 1900-01 onwards.


It will be seen from Part I. (p. 9), that the Gross Liabilities

of the State amounted on the 31st March, 1922 to
and on the 31st March, 1923, to

£ 7,742,526,147 7,842,725,746

There was therefore a net increase in the nominal debt of


This net increase of Liabilities which took place in 1922–23 is to be explained

as follows:

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The estimated capital liability in respect of these Annuities stood on

the 31st March, 1922, at And on the 31st March, 1923, at..

£ 16,191,166 13,681,065

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Unfunded Debt-continued.
The Unfunded Debt was increased by additional creations under the

War Loan Acts, 1914 to 1919, and the Finance Act, 1920, as
follows :-

5 per cent. War Loan, 1929–47(for National War Bonds converted)
4 per cent. War Loan, 1929–42 ( do.


do. ) Treasury Bonds (for cash and do.


National Savings Certificates (net)..
National War Bonds (for U.S.A. Notes and Bonds converted)..
Other Debt under War Loan Acts, 1914 to 1919 (see page 33)..
Exchequer Bonds (£20) and National War Bonds (£110) for cash
Ways and Means Advances (net) ..

£ 147,010,907

646,258 172,759,371

11,876,185 21,315,092 109,620,538

130 46,596,000



On the other hand, reductions were effected by the following means :
5 per cent. War Loan, 1929–47 :-

Life Annuities

985,464 Suez Canal Drawn Shares

Surrenders for Death Duties

342, 142
Sums derived from Land Tax Redemption and
Composition of Stamp Duty

War Contributions by India, and by Colonies and

Repayments by Dominions and Colonies of War

Donations and Bequests and Sundry Debt Services 39,213

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