DEBT CONVERSION.

Hastings Standard, Issue 27, 28 May 1896, Page 2

DEBT CONVERSION.

It is interesting to note how the total debt of the colony is expanding under t-lio conversion operations of recent years. Below wo givo the figures for a series of years to 1802, showing the increment on the original debt of about nineteen millions sterling

It will bo soon that the conversion operations havo cost us C1,G00,902, but of course we have saved in interest to a certain extent. The conversions were all to 4 per cent, stock, and of the nineteen odd millions converted £10,214,100 was bearing interest at 4 J per cent., and by conversion this sum was increased to £10,02-1,716 to which must be added about £IOO,OOO for expenses. To save ten shillings per cent, per annum or £51,070 10s a year in interest, wo have increased our indebtedness by £SIO,GIG. In the old loans, besides carrying a high rate of interest thoro was a sinking fund provision which, if maintained, would havo extinguished the respective loans at maturity. By the conversion of tho loans there is no longer any necessity to provide sinking funds ; furthermore most of tho accrued sinking funds on converted loans has passed into the consolidated revenue and been spent. The public debt has been slowly increasing by conversion operations, and this, which is provided for by Act of Parlia ment is popularly termed "sly borrowing." Whatever term may be applied to it, there is no mistaking our liability in the matter.

£ £ 1881—4,476.000 converted into .5,371,200 1883 — 1,832.000 „ at p:ir 1,832,000 1883—3.053.900 into 3,145,5] 7 1883— 5u4,400 522,054 1884— 745,i)00 764,240 1886—1,891.200 „ 1,910,112 188(5— 88.200 40,492 188(1— 65.600 73,800 1880—1,202.700 „ 1,318,554 1880— 136,000 140,080 188(3— 19,000 20.710 1880— 114,400 124.696 1886—1,054,900 „ 1,060.000 1892— 4:1,000 47,960 1892—4.214,100 „ 4,509,087 .£19,481,600 £20,880.502 Expenses of conversion ... 202,000 £•21,082,502