COLONIAL BORROWING.

Inangahua Times, Volume IX, Issue 1390, 21 April 1884, Page 2

COLONIAL BORROWING.

(London Bullionist^ January 19.)

While in England we are attempting heroic measures to liquidate our huge debt ; while the Government of the United States is rapidly extinguising its debt with a prodigy of persistent determination which is unprecedented ; while France groans under the burden of her formidable indebtedness, but still groans for reduction of the total ; while many other nations are attempting to ease their load by various schemes of "conversion," and repudiation more or less covert, the Australian Colonies are rushing into enormous new liabilities, and doing it with a light heai't. To the eye of the true observer a shadow rises ominously on the horizon of their future career. Their present prosperity and smiling wealth form a bright and gqrgeous picturo, but

its best effect is marred by dark shadows. Debt, grim and greedy, sits at the gate and lays a heavy tribute on the wealth of the land. Already one-third of the exports of these fine countries is forfeited to the exigent demands of a stern taskmaster. This is no idle figure of speech, We have it on the authority of the Financial Treasurer of New Zealand, who, in particular, said : "We have paid annually, on the average, for interest outside the Colouy, during the last 15 years, nearly £1,700,000; but it roust be borne in mind, in considering our present position, that we are n<w paying not less than £2.500,000 a yeur for interest to noa-residents. In other words, rather more than one-third of our exports do not belong to-, vs — that' is to say, they have to go 1 to pay our debts abroad, and bring us no return whatever, except the difference- between the iuterest we pay for the owe of our borrowed money, and tb6 profit we make by its use, which is probably not more thjtn 2 per cent," It is substantially the same with tbeeotfier Colonies. Of the Public Debt it appears that the bonds of 80,000,000 out of the 96,000,000 millions are hold by England.

As against this debt the colonist* say that their income from ail sources . is L 183,000,000 a year, and is dorivftd from the undermentioned sources : — Millions, Pastoral pursuits .. ..39 .• Agriculture 37 Rents of property .. .. 13 Manufactures .. .. ..11 Profits of commerce .. ..10 Mining 8 Railways ... .. .. 5 Banking and other sources .. 10 133 The Government takes 21 million* for revenue, and " we have 112 million* to do what we like with." Now here is a fund out of which the debt might speedily be liquidated. •• We save," say the colonists, " 27 millions a year r and the rest (of the 112 millions) wo upend on ourselves." Surely there could be no better application of these savings of 27 millions than to the extinction of the debt — not to speak of the rest of the 112,000,000, which, with an o*travagance which amounts almost (*> licentiousness, they claim a right "& spend on themselves." Tbe prodigality is begotten by the superabundance of their wealth ; but with the foreign creditor sitting at the door and swallowing oue- thud of their exports, it is not true economy, the foreign debt of the' Colonies, their magnificent public works notwithstanding, is the danger ahead. If possible a still greater danger is the levity with which they reconcile themselves to the probability of an early increase to 150 — possibly to 250,000,000. It would be an act of true petriotistn if the Australians were to buy up their own public stock and keep it at home.