TREASURY BILLS.

Lyttelton Times, Volume CXX, Issue 15003, 25 May 1909, Page 6

TREASURY BILLS.

Tub “Otago Daily Times” is attempting to justify its contention that tho payment of the. outstanding Treasury bills at the rate of £150,000 a, year during the past three years has not reduced tho indebtedness of tho country by drawing an imaginary distinction between tho “general indebtedness” and tho “ indebtedness in respect of Treasury bills.” Because these bills, which, as wo have already explained, wero inherited from the last Conservative Government, were not included in tho “general indebtedness” our contemporary maintains that tho obligations of the dominion wore not lessened when two-thirds of them wore redeemed. Wo might safely leave tho matter at that—a nico exorcise in hair-splitting which tho public will he able to appreciate—but it may ho as well to state, tho facts again. When , the Liberal Govormfient took office in 1891 it succeeded to a. parcel of Treasury bills which Mr Ballanco reduced to £700,000. Mr Soddon was content to leave them at that figure, hut in 1906 Sir Joseph Ward, announced his intention to pay them off as speedily as possible. This ho has done at tho rate of £150,000 a year, and tho amount outstanding is now only £250,000. Tho “ Otago Daily Times” lias the grace to say that it is “ satisfactory ” to find tho hills being reduced and that “ tho Government is entitled to credit” for having undertaken to pay them off, but it refuses to withdraw its silly contention that tho operation does not lessen tho public debt. Obviously if the payment of the bills were merely a piece of financial jugglery which left the indebtedness of tho dominion just where it stood before, tbero would bo no reason for satisfaction and no occasion for complimenting tho Government.