VICTORIAN FINANCIAL POSITION.

Otago Witness, Issue 1994, 12 May 1892, Page 12

VICTORIAN FINANCIAL POSITION.

Mr F. 0. Bridgmen in the Auckland Herald has taken up the cudgels on behalf of Victoria, contending that putting on one side any sentimental feeling of brotherly love and affection, the present crisis is Victoria is of a far greater importance to us in New Zealand than the majority of people here seem to think, if the majority think about it at all. Utilising Mr Hayter's figures, he proceeds to show that Victoria is nearly as large as the islands of Great Britain, the area of ,the former being 87,884-, and that of the latter 88,309 square miles. But whilst the former has 13 persons, the latter has as J[many, as 374- persons, or nearly 30 times as many to the square mile. The public and private wealth of Victoria is estimated at L590,862,000— the public wealth being put down at L 134-,700,000, the principal items of which are railways L 36,000,000, other public works L 13,000,000, and unsold Crown lands (32,000,000 acres at a low estimate of L 2 per acre) L 64,000,000. The private wealth amounts to L 456 ,162,000, which, with a population of 1,140,405, equals L4OO per head. With reference to the private wealth, the figures refer only to that which is within the colony, but it is well known that large amounts of Victorian capital are invested in other Australasian colonies, chiefly in mining and pastoral properties. As the profits go to Victoria, the capital from which they accrue might fairly be considered as part of its private wealthi but it is left out in the statement made ac above. The public wealth of Victoria, according tp the foregoing statement, is in the proportion of LI 18 per head, and the private wealth jn the proportion of L4OO per head, makipg a total of L5lB per head of the population. According to an estimate for 1890, made by j)r GifEen, head of the Statistical department of the Imperial Board of Trade, the wealth of the United Kingdom amounts to L 270 per head, qr L 248 less than that of Victoria. In tjie Imperial estimate the value qf foreign jnvestments is included, whiph, as has already been stated, is not the cage in the estimate for Victoria. The public revenue of Victoria in 1890-91 was L 8,343,586, or L 7 7s 34 per head of the population. Deducting the railway revenue (L3,3|06,580) the balance is L 5,037,006, or L 4 8s 114 per head, which proportion, compared with' a simijar one relating to other countries, B.hows that Victoria has, per head, the largest revenue of ay\y country in the world ouf of Australia. The following are a few of the figures :— REVENUE PER IJEAD IN VARIOUS COUNTRIES, Victoria U890.-91) M 8 11 per head Germany (1890) 3 2 7 » France (1890) 2 lfl 8 •» Cape of Good Hope (1889) ... 212 7 n United Kingdom (1889-90) ... 26 6 .. Belgium (1890) 23 8 n Canada (1889) 1 11 5 n United States (1889) 15 9 a

The public debt of Victoria at the present time amounts to L 43,600,00 0; that of the whole of Australasia L 118,000,000. In comparing the Australian debts with those of other countries it is important to have regard to the fact that the former have been incurred almost entirely either for reproductive works, or for permanent improvements of great utility,, to the country, whereas those of most other countries were contracted for prosecuting wars, or covering revenue deficits. At the present time 95 per cent, of the Victorian borrowings have been expended on railways, waterworks, and other revenue producing works, from which the State derives a considerable income. In Victoria the national debt is about L3B per head ; in the United Kingdom it is about Ll9. The interest on the Victorian debt, however, is largely provided for by the reproductive works on which the money borrowed has been expended; but the debt of the United Kingdom is wholly unproductive — in other words, the interest can only be raised by means of taxes, ~ The railways of the United Kingdom — all constructed by private companies — cost L 828,000,000. If this amount be added to the national debt of the mother country, it would be increase to L4l per head, or L 3 per head moro than the debt of Victoria. Judging from the present growth of populalation, Victoria can now borrow overLl,2oo,ooo per annum without increasing her liability per head. Comparing the nominal amount of the national debt with the annual revenue, Victoria stands in a better position than any of the other Australian colonies (with the unimportant exception of the infant colony of Western Australia), or than most other important countries of the world, as will be seen from the following figures : — PROPORTION OF PUBLIC DEBT TO REVENUE IN VARIOUS COUNTRIES. Number qf yeara Country. revenue debt is equal to. Turkey W59 Portugal 13-61 France KV6I Egypt 9"92 New Zealand 9-64 South Australia 9"00 Austria 782 United Kingdom 773 Queensland 757 Canada 740 Tasmania .., 7"39 Spain 7*37 Italy 7-31 Brazil 6'Bo Belgium 654 Russia 654 Cape of Good Hope 586 New South Wales 5M5 Victoria 4-31 During the financial year 1890-91 the interest which accrued on the public debt of Victoria amounted to L 1,672,816. Out of this amount it was only necessary to raise L 416,681, or about 25 per cent, by taxation, &c, the remaining 75 per cent, being derived from publio works of a reproductive character. All the railways in Victoria are the property of the State. The borrowed money expended on their construction to 30th June 1891 amounted to L 33,172,426. The extent of railway open for traffic to 30th June last was 2763 miles, the cost of which has been L 35,518,871, or L 12,855 per mile. The net railway income in 1890-91 was L 987,922, or 2-886 per cent, of the mean capital cost as against 3*234 per cent, in the previous year. The falling off is attributed to the fact that in consequence of the rapidity with which railway construction has been earned on, rather more than a fourth of the mileage has been open for less than three years, and consequently the traffic has not had time to develop. ■ In 1890-91 the net railway income was in the proportion of 3-17 per cent, on the borrowed money spent on railway construction ; in the previous year it was in the proportion 0f.3;57 " per cent. ; and the loans outstanding bear interest at the average rate of 4 per cent. The average returns from railways in Victoria during eight years ended with 1888-89 was 391 per cent. ' As equally favourable statistics can be furnished generally in connection with tho borrowings of the Australasian colonies, the writer fails to see that there is sufficient or just cause for the present distrust.