PUBLIC DEBT REDUCTION

Evening Star, Issue 19002, 25 July 1925, Page 3

PUBLIC DEBT REDUCTION

AN IMPROVED METHOD The gross Public Debt at March 31, 1925, was £227,814,647, as compared with £221,616,361 twelve mouths previously. The increases are shown as under; —Ordinary debt, £2,646,320; State Advances, £4,335,658; discharged soldiers, £18,770; while the war debt has been reduced by £802,462, leaving the net increase in the Public Debt at £6,198,286. The Minister points out that out of this increased deb* the State advances to settlers and workers absorbed 70 per cent. The total borrowed for ordinary debt purposes was £4,725,243, but by redemptions out of ordinary revenue account (£1,031,215) and from other accounts (£997,708) the increase in the ordinary debt for the year was reduced to £2,646,320. Accrued sinking funds hold amounted to £13,462,839, leaving the net debt at £214,351,808, as conspared with ‘ £208,642,333—the_ increase in the net debt thus being £5,709,475. Mr Nosworthy emphasises the other side of the ledger as under:— “The assets of the dominion have appreciated considerably, and largely reflect the increase in debt. Although in some quarters the increase in the debt is viewed with misgivings, 1 see no reason for fear as to the ability of the country to carry the liability so long as the policy followed by the Government of devoting borrowed money to the creation of good assets of a. reproductive and interest-bearing nature is continued, and provided our rate of development on these lines is not ahead ol the power of the community to make profitable use of the capital so raised.” He adds that loans falling due between 1926 and 1932 total £89,459,465, of which £58,536,630 is hold in New Zealand.