Manawatu Herald. THURSDAY, FEB. 10, 1898. The National Debt.

Manawatu Herald, 10 February 1898, Page 2

Manawatu Herald. THURSDAY, FEB. 10, 1898. The National Debt.

« ~ To colonists accustomed to the debt incurred by successive Ministries, the amount due by Great Britain, in proportion to the wealth and numbers of the inhabitants, <may appear but a small matter, yet the figures loom up large. As we, who reside in New Zealand are not expected to pay any proportion of this debt, it being well known we have a sufficiently heavy one of our own. v right be thought uadleba io refer to the matter, but many incidents 'nt to how closely our safety is connected With the ability of Great Britain to find the enormous sums needed in a modern war. A war brought up the English debt, like the Maori war gave a start to our colonial debt, and any other war will add materially the debt of every nation which foolishly indulges in it. Present day wars are shown to be but of very Bhoit duration, they are sharp, fierce, destructive and expen Bive, and immediate cash is necessary. There can be no challenge to the statement that Great Britain holds pride of place in the financial market, and investments in her debt are considered the soundest that can be obtained, and many an European ! sovereign, even as lately as the late ! Napoleon 111, have invested their private property in English Consols. Thus, should it be necessary for Great Britain to borrow further [ sums, as in the case of a war, she I moat possibly would, it can be depended on any amount of money being forthcoming. In a small community like a colony one's ideas as to what is a large sum of money j gets dwarfed.' Thus to read that the j net National Debt is £62,689,942, I looks like a burden almost too heavy to bear, but it is not so. In January, 1816, after the great Continental war?, the country's indebtedness was over nine hundred millions sterling. In this year the debt equalled £ 45 a head of the population, whilst at present it only represents amounts between £14 and £15 a head. Looking at the question from another date, as lately % as 1883 the Debt stood at 718 millions whilst the aojfcual Funded Debt of today stands under 590 millions, the figures fiist mentioned being the Debt, permanent and with the annuities, and the unfunded debt and other liabilities. It is calculated that at tbe present rate of shrinkage another twenty years will see two hundred millions further knocked off. Investors do not want to see the Debt reduced, as there is nothing co safe offering for investments, and how eagerly the Consols are sought can be guaged by the high prices paid for so poor an interest return bg inv-t. .- .fc. In 1887 the interest payable on Jho Debt was reduced to two and i je quarters per cent, yet we find tne next year people paid £97 for tha £100 stock which would thus only yield them £2 163 8i per cent, and in 1896 they paid £110| for the £100 stock so that the interest obtainable was only £2 93 7d. Aa we are considering the value of money we will take this opportunity of drawing attention to the enormous sums passing in business circles in London. The Bankers' Clearing House is where each bank-ing-house settles the whole amount between one another, tha differences to cred't being paid them by a cheque on the Bank of England. The total ' sums passed through this Clearing House for tho year ending 31st December, 1896, was over seven thousand five hundred and seventyfour million pounds I On Stock Exchange days the payments were over 1162 millions, and on payments on Consols account days amounted to 380 millions. There is thus a tremendous inflow and outflow of capita], and a country that has taken a liability of £45 pei' head on an emergency, and has now only a liability under £15 per head has plenty of margin to come and go upon should the necessity arise. This is so far satisfactory to colonists as it enables them to comfort themselves with the thought that their proteotor " has the ships, the men, and the money too."