DEBTS OF AUSTRALIA.

New Zealand Herald, Volume LXI, Issue 18897, 20 December 1924, Page 11

DEBTS OF AUSTRALIA.

DEPRESSING COMPARISON. RAPID INCREASE IN DECADE. ' PRODUCTION. LAGS ■ BEHIND. By Telegraph— Association—Copyright. A. and N.Z. \ SYDNEY. Dec. 19. A depressing comparison between the increase of production in Australia . and the constant increase in the State debts was made by the Federal Treasurer, Dr. Earle C. G. Page,-before ; his departure for Canada. ',-'* '' '■ While on June 50, 1911, the State debts amounted to £217,750,000, they had increased since then to nearly £570,000,000, an increase of more than 100 per cent., while the increase of population was only 22 per cent, during the same period. The value of production increased from- £188,401,600 to £346.662,000, an increase of 85 per cent. However, taking the relative ... values as between 1911 and 1923, production in the latter year represented a value of only £221.000,000, or an increase of 17 per cent. ■ • In the year 1911-12 the States had to meet an interest bill of £10,419,000, while in 1921-22 the bill was £42,652,232. In addition to . State debts, the Commonwealth owed £415,000,000, of which £80.000,000 was recoverable. NEXT YEAR'S CONVERSIONS. TOTAL OF £68,813,950. ,/ [from our own correspondent.] , SYDNEY.'Doc. Iff. Huge as have been the loan transactions of the Federal Government during the present year, next year will witness transactions for the conversion of a much greater sum, representing the greatest conversion operation ever undertaken by the Commonwealth. On December 15, 1925, £68,813.950 of 4£ per cent, stock . and bonds, redeemable in Australia, will mature. The Treasury will endeavour to secure the continuance of the loan by means of conversion. This loan was free of Federal income tax. Since the Commonwealth and the States have agreed not to issue any more tax- ' free loans, next year's conversion flotation will probably be issued at 5£ per cent. Mr. J. R. Collins, Secretary to the Treasury, states that as this will be tho largest operation of its kind yet attempted plans for handling it have been under consideration for some time. "We are confident of a successful result," he said, "but details of conditions of issue cannot a:; nounced at present." The large redemption and conversion loan of 1923 and 1924 provided for the continuation of a 5 per cent, war loan of £38,693,050, which matured on September 15, 1923, and for meeting war gratuities which matured on May 31,. 1924, j and . totalled £19,606,428. Of. the £38,693,050 due to holders in; the 5 per . cent, war loan £23,836,824 was converted into new securities, leaving a balance of £14,856,226 to bo redeemed. Toward the payment of that balance £8,748,999 in now, cashwas received • from the public,, leaving a shortage on the whole loan 'opera <tt £6,106,227, which was met' out of -.. balances in the Treasury. '. -Jv:, Vv: Of "the. indebtedness of £19,606,428 in respect of war gratuities £3,931,0921; was converted into' new holdings of inscribed stock and bearer bonds.• The balance of war gratuity •indebtedness which . the Treasurer was called upon to redeem after allowing for the conversions was £15,675,336, of which £7,702,590 was provided by new cash received from the public and £6,000,000 was subscribed by the note issue department of tho Commonwealth Bank. Tho £6,000,000 was used to pay off the war gratuity indebtedness of the Treasury to tho banks. These operations left a shortage of £1,972,746 on the war gratuity transactions of the ■ year, which was found out of balances in the Treasury. . ','-,- /,,.. - - ;.