THE TRANSVAAL DEBT

Evening Star, Issue 12395, 7 January 1905, Page 4

THE TRANSVAAL DEBT

Up to date the debit incuDred by the Transvaal is 65 millions sterling. The items may 'be thus sufflmarised :-^

1. The Government loan of 35 milliora, of which 30 millions hare been issued. 2. Hie Transvaal's war indemnity of 30 millions, promised to Mr Chamberlain. 3. Johannesburg's municipal expenditure. How is the Transvaal Government goin» to pay the.* debts? asks the Strath African correspondent of ah English financial paper. The white population of the Transvaal is 300,000. The first 30 millions loan, therefore, placed a debt of £IOO per inhabitant on them, and the promise of <SO millions to Mr Chamberlain increased this to £2OO per head. But who are these 600,000 people? Half of them aire Boefs, who are now mostly ilj a poverty-stricken condition. Most of the rest are employees oh the mines; shopkeepers, and laborers, with their families. For all practical purposes there are about 2,000 well-off people living in the Transvaal, and these people are the security for this great debt H the 6o millions is divided" over these people, their theoretical responsibility works ont at £32,500 per bead i This, of course, is t ridiculous; but it serves to show that it is not the people of the country, but the mines, which wdl have to pay all the debt. The debt must not bo looked on as permanent debt; the.resources of the Transvaal arid its small population forbid that. It must be looked dix lis debentures redeemable over a peri6d, aid thai petiod shohid be the next twenty years, duireg which the Sana 1 mine's will "be hi their h*yday. As' a slight set-off, the first itthi (lie 30 millions Joan), is Secured to a considerable extent. Half oLthis is represented trtrailways. At present these are probably not paving interest and Sinking fund, on their cost, but with improving cdndliiohs and more Haines starting to. work they should do well. "■"-.•