NEW ZEALAND’S DEBTS.

Globe, Volume XXIV, Issue 2417, 4 January 1882, Page 3

NEW ZEALAND’S DEBTS.

The following interesting information relative to the various loans floated in London by local bodies, with comments thereupon, Is from the pen of a home correspondent of the “New Zealand Times:”— I am glad to say that on the whole the British community, which constitutes the United Kingdom, has faith in New Zealand ; its climate and resources are as much thought of as ever they were. Not an adverse word is now publicly heard as to your intention and ability to pay the interest on your manifold pubic debts, if only common sense and prudence is displayed by whatever Government is in power ; at the same time, New Zealand securities in value stand lower than those of any of the Australasian colonies. This results from excessive and rapid borrowing ; but for all that Australian and New Zealand General Government debentures, or bonds, rank as colonial consols, only second to British consols. To bo sure there are some slight misgivings as to the propriety of your municipal corporations, harbor boards, and local boards making such frequent appeals to the money market here for purely local and almost parochial purposes. It is desirable, in the interests of the whole colony, that those appeals should be less frequent in the future. The general public in England, and, I fear, your colonial community at large, have little idea as to the magnitude of New Zealand’s local borrowing. To enlighten them a little— I hope without presuming too much —I have compiled from official lists the following statement of New Zealand local borrowing in a foreign market. It may not be complete in all respects, but it is nearly so, and has been collected and collated from the highest Stock Exchange authorities and private sources:—

Summary of Local Debts op New Zealand, as quoted in the London Stock Market’s Prices Current of October 29th, IS 81.

'lnking the Colonial debt (including that extravagant and reckless financial operation of changing the 5 per cent, five million loan into 4 per cent, inscribed stock, at a cost of £895,200 added to your permanent debt—all for the sake of a paltry saving of £8952 in annual interest. This ought to be called Vogel’s “job.”), after deducting accrued sinking funds, there remains, according to your Treasurer’s last Financial Statement, a solid permanent debt of £28,040,170, re. quiring 1,543,000 sovereigns, or their equivalent, to bo sent Homo every year to pay the interest thereon and sinking funds. Thus, then, we see that the £ Colonial debt amounts to 28.04j0.170 Municipal and Board debts amount t 0... 2,050,400 Total £30,690,400 The interest and sinking funds of the local loans cannot here be correctly given, but taking at the average of 6 per cent, it will not be far from the sum of £159,000, making with the Colonial interest and sinking funds a grand total of say £1,702,000, to be nearly all annually remitted to London, to fructify in the pockets of strangers 15,000 miles away. This, I must admit, is a formidable total. Still, as the railways, with each succeeding year, yield more and more profits as population increases, as flocks and herds multiply, as the cultivation of the land spreads, as commerce extends and the produce of your mines expands, so will your financial moans become larger and larger, and fully equal to all demands to be made on them, provided that excessive caution is manifested in your future calls on the money market of London. Then, indeed, the future of New Zealand is bright and full of promise. I presume that within a year or two Now Zealand will require to borrow to pay off a floating debt of Treasury bills and debentures, and, perhaps, for other yery urgent requirements. After this it would be wise—nay, more, it would be absolutely necessary to stop borrowing for some years to come.

Bate Amount Last City, Town, or Harbour per of each BnsiBoard. cent. Loan. ness £ done. Auckland 6 100,000 HGt Auckland Consolidated 6 55,000 116* Auckland Harbor Board C 100,000 106fc New Plymouth Harbor Board 6 200,000 105 Napier (Borough) ,,, t) 70,000 108* Napier Harbor Board ... 7 75,000 103 Wanganui Harbor Board ti 00,000 105 Wellington Public Improve113* ments C 200,000 Wellington Inmrovements and 6 113 Waterwoi&s 230,000 Christchurch Drainage 6 200,000 I1G* Lyttelton Harbor Board 6 200,000 115* Oamaru Harbor Works 6 100,000 103* Oamaru Water Works 7 60,000 110* Timarn Debentures 7 00,000 HO Dunedin Water Works 0 117.000 117* Dunedin Municipal 6 100,000 HC* Dunedin Consolidated 5 209,400 (103 1 exd Dunedin Harbour Board G 250,000 108 Dunedin Harbor Board ... G 100,000 )S§ Invercargill (placed privately. 54,000 I c 4 not quoted) G do. Bind (placed privately. not 96 quoted G 50,000 Total £2,650,400 GROUPED RECAPITULATION. £ £ Auckland ... 225.000 Timarn ... 60,000 New Plymouth ... 200,000 Oamaru 100,000 Napier ... ... 145,000 Dunedin 830,400 Wanganui ... 6'\000 Invercargill ... 54,000 Wellington ... 430,000 BluiY 50,000 Christchurch and Dyttelton ... 100,000 Total £2,650,100