SOUTH AFRICAN LOAN.

Dominion, Volume 6, Issue 1569, 12 October 1912, Page 5

SOUTH AFRICAN LOAN.

BIG ISSUE IMMINENT, By Toleerapli-Preaa Assoolatlon-floDTrfeht Cape Town, October 10. A five million loan for South Africa is imminent. It will probably be floated in London. • . AVERTING A DEFICIT. With public expenditure mounting up, an"d additional commitments, such as the defences scheme, looming ahead, the outlook for tho taxpayers of the- Union 13 not of a very cheerful character. It is predicted that, failing drastic retrenchment, the country will next year be faced, on the basis of the existing revenue, with a deficit of something like one and threequarter millions sterling. Reviewing the situation, the "Caw Times" remarks that the outstanding fact which the country would do well to bear in mind and to impress upon its representatives in the various constituencies is that the present scale of expenditure in the Union is very largely in excess of the capacity of the revenue frtfm existing sources to meet it. Last year tho expenditure incurred was .£16,638,000. During tho current year an outlay exceeding this amount by nearly half a million sterling is estimated. JSo doubt General Sinuts will follow the excellent example of his predecessor, who issued last year at the close_ of the session a circular enjoining the strictest economy in air departments, with results which were satisfactory. But the country must bo under no illusions. The situation in this, the third year of Union, is critical enough. A deficit will only be averted by drawing on the railway funds and by absorbing tho surplus of a former year. Next year neither of these resources will be available. If we assume that ordinary revenue and ordinary expenditure are on the same scale during r.ext year as on the basis of tho estimates for the current year, the country will have to face increased taxation t° tJ I9 tune of some •£1,340,000 in order to make both ends meet. The alternative is heavy retrenchment in every direction."