THE HALF-MILLION MUDDLE.

Press, Volume L, Issue 8651, 28 November 1893, Page 2

THE HALF-MILLION MUDDLE.

TO THE EDITOR OF TUE PRESS. •Sir, —The Lyttelton Times this morning makes another very misleading statement with refereuce to the increased indebtedness of the colony. Freed from all the column of mist with which the Lyttelton Times surrounds it, I submit in the most simplo form that the net iucreascd iudebteduess by tiie operation is £270,000. Thus : . The colony owed 4 per cent. Im-p-rial guaranteed debentures ... £500,000 And debentures falling due this year ... ... ... 96,000 Gross liability of ... ...£595,000 Against this we had in sinking fund ... ... ... 255,000 Net indebtedness ... ... £340,000 To get rid of which the Seddon Ministry issued new Inscribed Stock for ... ... ... 610,000 Deduct" net previous liability as above ... ... ... 340,000 Showing a net increase of liability of ... ... ... ... £270.000 Nor is this the only bad feature about the transaction (as has been previously pointed out). To redeem the £500,000 the Bank of England charged £58,000. So that is a clear loss. And as the £610,000 new loan was sold at a discount of 5 per cent., the loss on that itere was £30,500, or a total loss to the colony of £88,500, besides its' being saddled with the increased liability. In the face of all this, the Lyttelton Times and Mr Reeves will go on making involved statements to try and delude the voters, bub they will not be deceived—Yours, &c., Elector.