S. AFRICA’S PUBLIC DEBT

Greymouth Evening Star, 7 February 1939, Page 4

S. AFRICA’S PUBLIC DEBT

SMALLEST AMONG DOMINIONS

JOHANNESBURG, Jan. 4.

With an increase of £7,680,971 in the public debt of the Union during the year ended March 31 last, the Union’s national debt became £262,617,905. While this does not represent a high mark, it is only £12,000,000 less than the peak figure of £274,000,000, reached in 1933, and represents the fourth annual successive increase in the national debt.

During 1934 and 1935 South Africa reduced its indebtedness, but the financing of huge Government public works, social welfare and irrigation ! schemes reversed the process of debt reduction on which the Union Government embarked soon after the country left the gold standard. The internal debt is now much larger than external debt, and at the end of last March the South African Government owed £101,123,208 oversea and £161,494,697 in the Union. The percentage of the external debt was 38.51 and of the internal debt 61.49, money owed externally showed a further decline of 2.27 per cent, during the year as compared with the preceding financial year. The sum of £4,606,415 was devoted to the reduction of the Union’s debt during the year under review, but new indebtedness amounted to £12,287,386, giving a net increase of £7,680,971. Of the new debt, £9,274,584 was represented by Union 4 per cent, inscribed stock, and £3,012,600 of 3i per pent, local stock. Compared with the Dominions of Canada, Australia and New Zealand, the Union has the smallest gross and net public debt, but while New Zealand has accrued a sinking fund of £19,941,000 against its public debt of, £287,670,000, the Union has only £6,-| 780,000 in sinking funds against its indebtedness of £262,617,000.